Question: MNC Corp. ' s operating cash flow ( EBITDA ) before interest and taxes was $ 2 . 4 million in the year just ended.

MNC Corp.'s operating cash flow (EBITDA) before interest and taxes was $2.4 million in the year just ended. To achieve this outcome, the firm will have to invest an amount equal to 18% of its EBITDA each year. The current tax rate for the company is 21%. Depreciation was $220,000 in the year just ended and is expected to grow at the same rate as the operating cash flow. The company expects that its free cash flow will grow by 5% per year forever. The appropriate discount rate for the free cash flow is 9% per year, and the firm currently has debt of $4.2 million outstanding. Use the free cash flow approach to value the firms equity. (Round answer to nearest whole number. Enter your answer in dollars not in millions.) Next Period's Free Cash flow to firm-
Intrinsic Value of Firm-
Instrinsic Value of the equity-

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