Question: 2 4 . ( 1 4 points ) You have estimated the free cash flows for a firm for the next three years as
points You have estimated the free cash flows for a firm for the next three years as $ million, $ million, and $ million. You expect that after that free cash flow will grow indefinitely at a rate of The firm's weighted average cost of capital is The firm has $ million debt, $ million excess cash, and million shares outstanding. a What is the estimated enterprise value of the firm? b What is the estimated market capitalization? c What is your estimate of the share price? d If the firm's cost of debt leftrDright is and the tax rate is what is the firm's cost of equity capital?
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