Question
Your firm maintains a constant interest coverage ratio. Yearly free cashflow is 22 million and yearly interest expense is 7 million. Your tax rate is
Your firm maintains a constant interest coverage ratio. Yearly free cashflow is 22 million and yearly interest expense is 7 million. Your tax rate is 38% and your unlevered asset beta is 0.9. Market expected return is 14% and the risk free rate is 5%
What is your companys levered firm value?
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International Financial Management
Authors: Jeff Madura
3rd Edition
0314862722, 978-0314862723
