Question: FCFF single stage Given the information: Current FCFF = $ 8 , 0 0 0 , 0 0 0 Target debt to capital = 0

FCFF single stage
Given the information:
Current FCFF =$8,000,000
Target debt to capital =0.25
Market value to debt =$15,000,000
Shares outstanding =2,000,000
Required return on equity =12%
Cost of debt before tax =5%
Long-term growth in FCFF =8%
Tax rate =32%
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
$
Round your answer to the cent.
 FCFF single stage Given the information: Current FCFF =$8,000,000 Target debt

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