Mountain Valley Enterprises is expected to have next year's free cash flow of $14 million. FCF is
Fantastic news! We've Found the answer you've been seeking!
Question:
Mountain Valley Enterprises is expected to have next year's free cash flow of $14 million. FCF is expected to grow at 5% per year into foreseeable future. Mountain Valley's cost of equity capital is 15%, cost of debt is 8%, and it is in the 40% corporate tax bracket.Pinnacle currently maintains a 0.4 debt to equity ratio. What would be the value of Mountain Valley as an all equity firm would?
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0133400694
1st canadian edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi
Posted Date: