OkayLearn4301 OkayLearn4301

21-12-2022
Business

Answered

the free cash flow to the firm is $400 million in perpetuity, the cost of equity equals 14%, and the wacc is 10%. if the market value of the debt is $1 billion, what is the value of the equity using the free cash flow valuation approach?

Answer :

Other Questions

a company reported total equity of $163,000 at the beginning of the year. the company reported $228,000 in revenues and $174,000 in expenses for the year. liabi

Net income is $40,000; depreciation expense is 8,000; decrease in accounts payable is 1,800; decrease in merchandise inventory is 2,500; increase in long-term l

Arrow bank has deposits of $630 million. It holds reserves of $40 million and government bonds worth $100 million. If the bank sells its loans at market value o

the bitzy spider company just issued a dividend of $3.0 per share on its common stock. the company is expected to maintain a constant 5 percent growth rate in i

Ahmad enterprise purchased a building at the cost of rm250,000. The purchase was paid rm50,000 in cash and the remaining rm200,000 is on account. Based on these

a corporation uses the indirect method for preparing the statement of cash flows. a fixed asset has been sold for $23,334 representing a gain of $3,606. the val

the market for fertilizer is perfectly competitive. firms in the market are producing output but are currently incurring economic losses. a. how does the price

determine the value of the inventory at the lower of cost or market, assuming lcm is applied to each class. item inventory quantity cost per unit market value p

co. has 8% coupon bonds on the market that have 10 years left to maturity. The bonds will make annual payments. If the YTM on these bonds is 6%, what is the cur

assume that will's marginal tax rate is 32 percent and his tax rate on dividends is 15 percent. if a dividend-paying stock (with no growth potential) pays a div