Question: Moving to another question will save this response. Question of Questions 20 points Smartine is a public firm with 25 milion shares outstanding You are
Moving to another question will save this response. Question of Questions 20 points Smartine is a public firm with 25 milion shares outstanding You are doing a valuation analysis of Smartine and you estimates free cash flow in the coming year to be $10 million you expect the firm's free cash now to grow by per year in subsequent years because the firm has only been listed on the stock exchange for a short time you do not have an acce ssment of Smart's couty beta However, you do have the following data for another form in the same industry Equity Beta Debt Beta Debt Equity Ratio smart ine has a much lower dobt-equity ratio of os, which is expected to remain stable and smart's debt is risk-free its corporate tax rate is 218 the risk free rate is 5%, and the expected rotum on the market portfolio is 10% Using this information you found out that 1) Smart Ine's equity beta144 2) Smartine's cost of equity 12 20% Smart Ine's tru e. Smartin's share prices Keep all answers up to two decimal points
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