Parets Company has a free cash flow to firm (FCFF) of $600 this year. This is expected
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Parets Company has a free cash flow to firm (FCFF) of $600 this year. This is expected to grow at a
constant rate of 10% per year for two years. After year 2, the FCFF is expected to grow at the rate of
2% per year, forever. An appropriate required return for this company is 15%. The level of debt
outstanding is $3000. The number of shares outstanding is 200. Estimate the equity value per share
today.
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0133400694
1st canadian edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi
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