Question: FCFF single stage Given the information: - Current FCFF =$1,000,000 - Target debt to capital =0.25 - Market value to debt =$15,000,00 - Shares outstanding
FCFF single stage Given the information: - Current FCFF =$1,000,000 - Target debt to capital =0.25 - Market value to debt =$15,000,00 - Shares outstanding =2,900,000 - Required return on equity =13% - Cost of debt before tax=7% - Long-term growth in FCFF =5% - Tax rate =39% Calculate the: a. cost of capital % Round your answer to two decimals b. value of the firm $ Round your answer to the dollar: c. value of the equity per share 5 Round your answer to the cent
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