Increase/decrease your WACC by 1% each time. Increase/decrease your long-term growth rate by 0.5% each time. Which

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Increase/decrease your WACC by 1% each time. Increase/decrease your long-term growth rate by 0.5% each time. Which factor(s) is your equity value most sensitive to?

- Initial WACC is 11.43440%

- Initial Growth rate is 3%

Related Book For answer-question

Fundamentals of Corporate Finance

ISBN: 978-0132148238

2nd edition

Authors: Berk, DeMarzo, Harford

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Posted Date: Nov 12, 2019 08:12 AM

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Increase/decrease your WACC by 1% each time. Increase/decrease your long-term growth rate by 0.5% each time. Which

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The equity value is the present value of all future cash flows so it is sensitive to t... View the full answer

Fundamentals of Corporate Finance

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