Question: USE THE INFORMATION BELOW FOR PROBLEMS 9-10 At the end of the yeur 2010 the CKL Corporation had operating free cash flow (OFCF) of $300,000
USE THE INFORMATION BELOW FOR PROBLEMS 9-10 At the end of the yeur 2010 the CKL Corporation had operating free cash flow (OFCF) of $300,000 and shares outstanding of 100,000. Total debt is currently $10,000,000. The company projects the following annual growth rates in OFCF Growth Rate Year 25% 2011 20% 2012 15% 2013 10% 2014 12% 2015 14% 2016 16% 2017 18% 2018 Referring to the information provided, calculate the required rate of return on equity 8.2% 9.4% 9.0% 10.3% 7.3% USE THE INFORMATION BELOW FOR PROBLEMS 9-10 At the end of the yeur 2010 the CKL Corporation had operating free cash flow (OFCF) of $300,000 and shares outstanding of 100,000. Total debt is currently $10,000,000. The company projects the following annual growth rates in OFCF Growth Rate Year 25% 2011 20% 2012 15% 2013 10% 2014 12% 2015 14% 2016 16% 2017 18% 2018 Referring to the information provided, calculate the required rate of return on equity 8.2% 9.4% 9.0% 10.3% 7.3%
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