You have been given the following numbers from the management of a company as an estimation...

 

 

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You have been given the following numbers from the management of a company as an estimation of future performance (numbers in MSEK): Year EBIT Depreciation Working Capital Investments 0 100 1 180 20 120 50 2 200 24 125 55 3 230 27 130 60 The free cash flow (FCF) in year 4 is estimated to be 150 MSEK and is expected to grow by 4 % until the end of time. The WACC of the company is 13% and the company tax paid is 25% What is the value of the equity of the company if they have outstanding debt of 400 MSEK? You have been given the following numbers from the management of a company as an estimation of future performance (numbers in MSEK): Year EBIT Depreciation Working Capital Investments 0 100 1 180 20 120 50 2 200 24 125 55 3 230 27 130 60 The free cash flow (FCF) in year 4 is estimated to be 150 MSEK and is expected to grow by 4 % until the end of time. The WACC of the company is 13% and the company tax paid is 25% What is the value of the equity of the company if they have outstanding debt of 400 MSEK?

Answer rating: 100% (QA)

Answer To calculate the value of the equity of the company we can use the free cash flow to equity F... View the full answer