DynCorp's FCFF is expected to be $600 million. The firm's interest expense is $80 million. The net debt of the firm decreases by $40 million. The tax rate is 35%. What are the FCFE, the market value of equity, and the price per share if the FCFE is to grow at 3% indefinitely, the cost of equity is 11%, and the firm has 250 million shares outstanding?

FCFE₁= $_______

EQ₀= $ ______

Price per share P₀= $_______

Answer rating: 100% (QA)

To solve this problem we need to calculate the Free Cash Flow to Equity FCFE the market va... View the full answer