Normaltown Corporation An analyst has predicted the free cash flows for Normaltown Corporation for the next...
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Normaltown Corporation An analyst has predicted the free cash flows for Normaltown Corporation for the next four years: YEAR 2004 FCF $13 million 2005 $17 million 2006 $23 million 2007 $28 million After 2007, the free cash flows are expected to grow at an annual rate of 4%. The weighted average cost of capital for Normaltown is 14%. If the market value of the firm's debt is $110 million, find the value of the firm's equity. $158.77 million $89.39 million $216.00 million $119.00 million Normaltown Corporation An analyst has predicted the free cash flows for Normaltown Corporation for the next four years: YEAR 2004 FCF $13 million 2005 $17 million 2006 $23 million 2007 $28 million After 2007, the free cash flows are expected to grow at an annual rate of 4%. The weighted average cost of capital for Normaltown is 14%. If the market value of the firm's debt is $110 million, find the value of the firm's equity. $158.77 million $89.39 million $216.00 million $119.00 million
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