Question: Question 2 Lecque is evaluating Suns by using the FCFF valuation approach toque has collected the fowing form dollars) Suns has a net income of

 Question 2 Lecque is evaluating Suns by using the FCFF valuation

Question 2 Lecque is evaluating Suns by using the FCFF valuation approach toque has collected the fowing form dollars) Suns has a net income of $271 million depreciation of 593 million, capital expenditures of $165 monde working capital of $42 million Suns will finance 40 percent of the increase in net fixed assets (calital expenditures less depreciation and 40 percent of the increase in working capital with debt financing Interest expenses are $121 million. The current market value of Pharmet's outstanding debt is 51.921 million FCFF is expected to grow at 5 percent indefinitely The tax rate is 34 percent. Suns is financed with 34 percent debt and the rest for equity. The before-tax cost of debt is 10 percent and the before tax cost of equity is 13 percent. Suns has 10 million outstanding shares Your task is to estimate the total value of the firm. Write your answer in decimal form and round it to two decimal places. Your answer will be in millions, for example - if you get 234.24. you can write 234 24 - but in fact, it is 234.24 "millions

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