A firm has a FCFF of $50 million and the cash flow grows at the rate of

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A firm has a FCFF of $50 million and the cash flow grows at the rate of 10% for 5 years and stabilizes at the rate of 6% forever thereafter. The firm has a net debt of $120 million and outstanding shares of 10 million If the WACC is 11%.

What is the value of this stock using the FCFF model?

Related Book For answer-question

Financial Reporting Financial Statement Analysis and Valuation

ISBN: 978-0324302950

6th edition

Authors: Clyde P. Stickney

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Posted Date: Mar 29, 2023 12:29 AM

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A firm has a FCFF of $50 million and the cash flow grows at the rate of

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The value of the firm can be calculated using the following formula Value of the firm Present value ... View the full answer

Financial Reporting Financial Statement Analysis and Valuation

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