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Labrador technologies Inc. plans to become public soon. The board of directors would like to know the value of common eq
Posted: Wed Jul 06, 2022 6:44 pm
by answerhappygod
- Labrador Technologies Inc Plans To Become Public Soon The Board Of Directors Would Like To Know The Value Of Common Eq 1 (33.15 KiB) Viewed 30 times
Labrador technologies Inc. plans to become public soon. The board of directors would like to know the value of common equity and have asked for your opinion. The firm has $2,855,655 in preferred equity and the market value of its outstanding debt equals $2,302,076. The WACC for this firm is estimated to be 10.10%. Use the DCF valuation model with the expected FCFs shown below; year 1 represents one year from today and so on. The
company expects to grow at a 2.7% rate after Year 5. Rounding to the nearest penny, what is the value of common equity? Period Year 1 Year 2 Year 3 Year 4 Year 5 Free Cash Flow $1,322,494 $1,303,016 $1,633,270 $2,362,639 $2,574,535