Swamp & Sand Industries has the following data. Interest expense is expected to be $5 million next year, and FCF is expected to be $164 million.  Both these values will continue to grow at a constant rate forever. The constant annual growth rate for both FCF and interest expense is 2%. The interest rate on debt is 6% and the unlevered cost of equity is 8%.  The corporate tax rate is 40%.


Calculate enterprise value using the Adjusted Present Value (APV) approach. 

Answer rating: 100% (QA)

A 43999 FCF next year 44000 Constant growth rate g 44001 Unle... View the full answer