A firm has unlevered beta of 1.1, and now its debt-to-equity ratio is 0.4. What is the
Question:
A firm has unlevered beta of 1.1, and now its debt-to-equity ratio is 0.4. What is the levered beta assuming the tax rate is 40%?
Using WACC to discount free cash flows, one gets the value of the firm. True or False?
Suppose beta is 1.2, the risk-free rate is 3%, market risk premium is 5%, before tax cost of debt is 6%, tax rate is 40%, and the firm's debt to equity ratio is 0.5, what is WACC?
A firm has EBIT of 100 million, depreciation of 15 million, a tax rate of 40%, a change in net working capital of 3 million, and capital expenditure of 20 million, what is the free cash flow?
Suppose this free cash flow grows at 3% per year forever, and the WACC is 8%, what is the firm value?
If this firm has outstanding debt of 150 million, what is the equity value of the firm?
Suppose a firm has a free cash flow of equity of 100 million per year indefinitely, and its cost of equity is 10%, what is the equity value of this firm?
If this firm has outstanding debt of 250 million, what is the firm value?
Valuation The Art and Science of Corporate Investment Decisions
ISBN: 978-0133479522
3rd edition
Authors: Sheridan Titman, John D. Martin