ABC Corporation has free cash flow to equity of $240 million this year, and it is...

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ABC Corporation has free cash flow to equity of $240 million this year, and it is expected to grow at a constant rate of 3% in the futre. Its cost of equity is 10% and its cost of capital is 7%. It has debt $120 million. The number of shares outstanding is 100 million. The share price is $ The firm value is per share. million. ABC Corporation has free cash flow to equity of $240 million this year, and it is expected to grow at a constant rate of 3% in the futre. Its cost of equity is 10% and its cost of capital is 7%. It has debt $120 million. The number of shares outstanding is 100 million. The share price is $ The firm value is per share. million.

Answer rating: 100% (QA)

To find the share price and the firm value we can use the following formulas Free Cash Flow to Equit... View the full answer