Question: FCFF single stage Given the information: - Current FCFF =$6,000,000 - Target debt to capital =0.25 - Market value to debt =$10,000,000 - Shares outstanding
FCFF single stage Given the information: - Current FCFF =$6,000,000 - Target debt to capital =0.25 - Market value to debt =$10,000,000 - Shares outstanding =2,100,000 - Required return on equity =14% - Cost of debt before tax =8% - Long-term growth in FCFF =6% - Tax rate =31% Calculate the: a. cost of capital b. value of the firm c. value of the equity per share Round your answer to the cent. FCFF single stage Given the information: - Current FCFF =$6,000,000 - Target debt to capital =0.25 - Market value to debt =$10,000,000 - Shares outstanding =2,100,000 - Required return on equity =14% - Cost of debt before tax =8% - Long-term growth in FCFF =6% - Tax rate =31% Calculate the: a. cost of capital b. value of the firm c. value of the equity per share Round your answer to the cent
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