Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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A company has the following free cash flow forecasts (in millions):
1
2
t
FCFF
Wählen Sie eine Antwort:
A. 1011.07
OB. 740.70
OC. 669.97
OD. 568.63
30
Die richtige Antwort ist: 740.70
35
3
40
The company's cost of equity was calculated at 10.00% and its cost of debt at 5.00%. The company's debt-to-equity ratio is 60.00%. The applicable corporate tax rate is 30.00%. After the fourth year, the free cash flow to the firm is assumed to
grow at 2.00% per year in perpetuity. What is the present value of the firm closest to?
4
45
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Transcribed Image Text:A company has the following free cash flow forecasts (in millions): 1 2 t FCFF Wählen Sie eine Antwort: A. 1011.07 OB. 740.70 OC. 669.97 OD. 568.63 30 Die richtige Antwort ist: 740.70 35 3 40 The company's cost of equity was calculated at 10.00% and its cost of debt at 5.00%. The company's debt-to-equity ratio is 60.00%. The applicable corporate tax rate is 30.00%. After the fourth year, the free cash flow to the firm is assumed to grow at 2.00% per year in perpetuity. What is the present value of the firm closest to? 4 45
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