You are given the following information for a firm: EBIT this period = $18.7 million Depreciation = $2.5 million Net Working Capital Increase = $0 Asset Beta = 1.4 Capital Expenditures = $3.2 million Growth Rate of FCF = 3% Risk Free Rate = 3% Market Risk Premium = 6.3% Using the above data, what is the present value of all FCF?
You are given the following information for a firm: EBIT this period = $18.7 million Depreciation = $2.5 million Net Working Capital Increase = $0 Asset Beta = 1.4 Capital Expenditures = $3.2 million Growth Rate of FCF = 3% Risk Free Rate = 3% Market Risk Premium = 6.3% Using the above data, what is the present value of all FCF?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter11: Determining The Cost Of Capital
Section: Chapter Questions
Problem 5Q: Suppose a firm estimates its overall cost of capital for the coming year to be 10%. What might be...
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You are given the following information for a firm:
EBIT this period = $18.7 million
Depreciation = $2.5 million
Net Working Capital Increase = $0
Asset Beta = 1.4
Capital Expenditures = $3.2 million
Growth Rate of FCF = 3%
Risk Free Rate = 3%
Market Risk Premium = 6.3%
Using the above data, what is the present value of all FCF?
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