calculate WACC for a Italian company operating in Healthcare Products sector assuming: a. application of H&BU...
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calculate WACC for a Italian company operating in Healthcare Products sector assuming: a. application of H&BU concept and fair market value approach b. risk free rate on the level of return on 10 years' Italian government bonds c. Appropriate CIT rate< d. Market risk premium proposed by Fernandez (2021)< e. Cost of debt equals 4,5% Based on this WACC, calculate the equity value of the company which: f. generates FCFF on the level of 30 mln EUR has a growth rate (g) equal to 2%?< has the current value of interest bearing debt equal to 110 mln EUR↔ g. h. i. j. has cash and cash equivalence equal to 20 min EUR possesses a piece of land which is not going to be used in operation activities. The market value of the land equals 30 mln EUR, whereas the book value amounts to 12 mln EUR. calculate WACC for a Italian company operating in Healthcare Products sector assuming: a. application of H&BU concept and fair market value approach b. risk free rate on the level of return on 10 years' Italian government bonds c. Appropriate CIT rate< d. Market risk premium proposed by Fernandez (2021)< e. Cost of debt equals 4,5% Based on this WACC, calculate the equity value of the company which: f. generates FCFF on the level of 30 mln EUR has a growth rate (g) equal to 2%?< has the current value of interest bearing debt equal to 110 mln EUR↔ g. h. i. j. has cash and cash equivalence equal to 20 min EUR possesses a piece of land which is not going to be used in operation activities. The market value of the land equals 30 mln EUR, whereas the book value amounts to 12 mln EUR.
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Related Book For
The Legal Environment of Business Text and Cases
ISBN: 978-1305967304
10th edition
Authors: Frank B. Cross, Roger LeRoy Miller
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