Assume you are an analyst tasked with valuing a hypothetical company, ABC Corporation, using the Discounted Free
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Question:
Assume you are an analyst tasked with valuing a hypothetical company, ABC
Corporation, using the Discounted Free Cash Flow to Firm FCFF method.
You have gathered the following information:
Financial Information:
Net Profit: $ million
EBIT: $ million
Financial expenses: $ million
Depreciation and Amortization: $ million
Capital Expenditures: $ million
The cost of the own capital Ke is
Changes in Net Working Capital: $ million
Tax Rate:
Total financial debt: $ millions
The company financial structure is as follow: own funds, debt.
requirement
What is the EV if the FCFF is expected to grow at per year in the upcoming
years, and the constant growing rate is
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
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