Latrobe Entertainment expects to have free cash flow of $10 million next year and the firm expects this cash flow to dec

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Latrobe Entertainment Expects To Have Free Cash Flow Of 10 Million Next Year And The Firm Expects This Cash Flow To Dec 1 (94.76 KiB) Viewed 65 times

Latrobe Entertainment expects to have free cash flow of $10 million next year and the firm expects this cash flow to decrease at a rate of 5% per year in perpetuity due to increasing competition. Assume that the firm has an equity cost of capital of 9% and its cost of debt is 6%. The firm's corporate tax rate is 30%. With a debt-to-equity ratio of 0.6, the value of Latrobe is closest to: $45.48 million $81.97 million $95.43 million $128.69 million None of the above