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You have been asked to value a firm with expected annual after-tax cash flows, before debt payments, of $150 million a y
Posted: Wed Mar 30, 2022 3:44 pm
by answerhappygod
- You Have Been Asked To Value A Firm With Expected Annual After Tax Cash Flows Before Debt Payments Of 150 Million A Y 1 (31.62 KiB) Viewed 52 times
You have been asked to value a firm with expected annual after-tax cash flows, before debt payments, of $150 million a year in perpetuity. The firm has a cost of equity of 12.5%, a market value of equity of $ 700 million and a market value of debt of $ 300 million. The debt is perpetual and the after-tax interest rate on debt is 7.00%. Estimate the cash flow to equity. O 150 129 O 140 O 101