ESS. OF INVESTMENTS - ETEXT ACCESS CARD
ESS. OF INVESTMENTS - ETEXT ACCESS CARD
11th Edition
ISBN: 9781265909055
Author: Bodie
Publisher: MCG
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Chapter 13, Problem 13PS

FinCorp’s free cash flow to the firm is reported as $ 2 0 5 million. The firm’s interest expense is $ 22 million. Assume the corporate tax rate is 21 % and the net debt of the firm increases by $ 3 million. What is the market value of equity if the FCFE is projected to grow at 3 % indefinitely and the cost of equity is 12 % ? LO 13 4

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ESS. OF INVESTMENTS - ETEXT ACCESS CARD

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