A company has annual after-tax operating cash flows of P2,000,000 per year which are expected to continue in perpetuity. The company has a cost of equity of 10%, a before tax cost of debt of 5% and an after tax weighted average cost of capital of 8% per year. Corporation tax is 20%. What is the theoretical value of the company? Group of answer choices P20m P25m P40m P50m
A company has annual after-tax operating cash flows of P2,000,000 per year which are expected to continue in perpetuity. The company has a cost of equity of 10%, a before tax cost of debt of 5% and an after tax weighted average cost of capital of 8% per year. Corporation tax is 20%. What is the theoretical value of the company? Group of answer choices P20m P25m P40m P50m
Chapter17: Multinational Capital Structure And Cost Of Capital
Section: Chapter Questions
Problem 12QA
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41
A company has annual after-tax operating cash flows of P2,000,000 per year which are expected to continue in perpetuity. The company has a
Group of answer choices
P20m
P25m
P40m
P50m
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