Question: Exavior Inc.'s pre-tax cash flow from assets during the current year is $160 million in year-end values. It is expected to grow at a constant
Exavior Inc.'s pre-tax cash flow from assets during the current year is $160 million in year-end values. It is expected to grow at a constant rate of 4% in the future. The firm's cost of equity capital is 8%, its return on debt is 3% and it maintains a debt to value ratio of 38%. The corporate tax rate is 21%.
What is the firm's total corporate value (in $ million) using WACC and the growing perpetuity firmula?
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