MortalCell, Inc. has free cash flow to the firm of $400 million in perpetuity, the cost of equity equals 10%, and the WACC is 8%. If the market value of the debt is $1 billion and MortalCell has 200 million common shares outstanding, What is market value of the equity using the free cash flow valuation approach?

Answer rating: 100% (QA)

Market Value of Equity Free Cash Flow to Firm WACC ... View the full answer