Question: help me please i will like your answer Question 6(1,5 points) The CFO of Spotify Inc. has summarized its free cash flows for the next
Question 6(1,5 points) The CFO of Spotify Inc. has summarized its free cash flows for the next three years in the following table. The cash flows are expected to grow at a constant growth rate 2.00\% afterwards. The company has been maintaining a costant gearing ratio of 0.25 , and has no plans to change this ratio in the future. Under this financing strategy, the cost of equity and cost of debt capitals are, respectir ' y,12% and 5%. The normative corporate tax rate is 25%. What is the value of Spotify's tax shield? Instructions: Round the result to two decimal places. For example if you get a result of 0.3567 then write 0.36 in the answer box below
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