Question: St. Blues Technologies' expected (next year) EBIT is $451.00, its tax rate is 36%, depreciation is $14.00, planned capital expenditures are $67.00, and planned DECREASES
St. Blues Technologies' expected (next year) EBIT is $451.00, its tax rate is 36%, depreciation is $14.00, planned capital expenditures are $67.00, and planned DECREASES in net working capital is $15.00. What is the free cash flow to the firm (FCFF)? The firm's interest expense is $21.00. Assume the tax rate is 36% and the net debt of the firm INCREASES by 4%. What is the free cash flow to equity (FCFE)? What is the market value of equity if the FCFE is projected to grow at 1% indefinitely and the cost of equity is 12%?
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