Question
Zero had a FCFE of $12.5M last year and has 20 M shares outstanding. Zero's required return on equity is 16%, and WACC is 13.2%.
Zero had a FCFE of $12.5M last year and has 20 M shares outstanding. Zero's required return on equity is 16%, and WACC is 13.2%. If FCFE is expected to grow at 8% forever, what is the intrinsic value per share of Zero's equity?
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The Sterling Bonds And Fixed Income Handbook
Authors: Mark Glowrey
1st Edition
0857190423, 978-0857190420
