a)
To determine: The value of equity for Company XL.
Introduction:
Equity is the total value of an asset that is less than the value of all liabilities on that asset.
b)
To determine: The weighted average cost of capital and equity value using of WACC method.
Introduction:
WACC (weighted average cost of capital) is the rate at which a company is expected to pay, on an average, to all the security holders in order to finance its assets.
Equity is the total value of asset that is less than the value of all liabilities on that asset.
c)
To determine: The
Introduction:
The cost of equity is the expected return a company needs to choose if investment meets capital return necessities. Cost of capital is often used as capital budgeting for the firm.
d)
To determine: The equity value using FTE method.
Introduction:
Free cash flow to equity helps to measure the availability of cash to equity holders after all debt, reinvestment in the project, and all expenses are paid.
Equity is the total value of asset that is less than the value of all liabilities on that asset.
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