Consider a firm that has projected dividends next year of $1.60 per share, $1.80 in two years, and a terminal value of $100 two years from now. If the firm’s cost of equity is 10% and the weighted average cost of capital is 16%, what is the current value of equity if the total outstanding debt per share is $50?

Answer rating: 100% (QA)

Formulae A 19187 Firm Equity Valuation 19188 Dividen... View the full answer