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Zeta Technologies has the following projections. It has no non-operating assets. Calculate Zeta's intrinsic value of equity using the FCFE model. Current year Year 1
Zeta Technologies has the following projections. It has no non-operating assets. Calculate Zeta's intrinsic value of equity using the FCFE model.
Current year | Year 1 | Year 1 | Year 3 | |
FCF | NA | 1,000 | 1,200 | 1,248 |
Total debt | 3,000 | 3,900 | 4,290 | 4,462 |
Interest rate on debt | 6% | 6% | 6% | 6% |
Tax rate | 25% | 25% | 25% | 25% |
Long-term growth rate | 4% | |||
Required return on equity | 9% |
a. | $21,165 | |
b. | $28,171 | |
c. | $23,282 | |
d. | $30,988 | |
e. | $25,610 |
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