A firm has Free Cash Flow to Equity (FCFE) of $1.3 billion. Their Weighted Average Cost of

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A firm has Free Cash Flow to Equity (FCFE) of $1.3 billion. Their Weighted Average Cost of Capital (WACC) is 11%, and the firm's Cost of Equity is 13%. FCFE is expected to increase indefinitely by 7.5%.

What is the value of this firm's equity (total)?

$30.48 billion

$45.48 billion

$25.41 billion

$34.78 billion

Related Book For answer-question

Equity Asset Valuation

ISBN: 978-0470571439

2nd Edition

Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen

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Posted Date: Jul 16, 2022 11:47 PM

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A firm has Free Cash Flow to Equity (FCFE) of $1.3 billion. Their Weighted Average Cost of

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The value of this firm can be arrived at by discounting the free cash f... View the full answer

Equity Asset Valuation

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