Compute for the: 1.Equity value 2. Firm value

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
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ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter12: Investing In Stocks And Bonds
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Problem 4FPE: The Castle Company recently reported net profits after taxes of $15.8 million. It has 2.5 million...
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 Firm and Equity Valuation Through Required Returns
The weighted average cost of capital of ABC Corp based on market values is 15.6% while its cost of ordinary shares is 21.0%. It has a long-term debt to equity ratio of 150%. The expected total dividends for the year is P3,400,000 and the growth rate of the share value is 4%.

Compute for the:
1.Equity value
2. Firm value

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