Question
Your firm can generate 300 in ebit per year forever. You are twice as risky as the average firm. The market is expected to earn
Your firm can generate 300 in ebit per year forever. You are twice as risky as the average firm. The market is expected to earn 12% and the risk free rate is 2%. Find the value of the firm and the wacc if there are no taxes and you use no debt.
ANSWER (1363.636, .22)
PLEASE SHOW WORK!!!
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Foundations Of Finance
Authors: Arthur J. Keown, John H. Martin, J. William Petty
10th Edition
0135160618, 978-0135160619
