Financial Management: Theory & Practice
16th Edition
ISBN: 9781337909730
Author: Brigham
Publisher: Cengage
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Financial Accounting
Transcribed Image Text:Falcon Dynamics Inc. is a growing firm that is expected to generate $12
million in cash next year. The firm's cash flow is expected to grow at a rate
of 18% per year. The firm's cost of capital is 22%.
A) What is the market value of this firm?
B) What is the firm's P/E ratio if it has no debt?
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