Free cash flow to firm for Adams Corporation is currently $300,345,800.00 but is expected to grow by 4 and 3/4% each year forever. If the company's cost of capital is 10 and 7/8%, how much is it worth? If market value of debt is $3,000,123,789.00 and Adams Corporation has 200,500,100 million shares outstanding. How much is the firm value?

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter7: Corporate Valuation And Stock Valuation
Section: Chapter Questions
Problem 1P: Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1...
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Free cash flow to firm for Adams Corporation is currently $300,345,800.00 but is expected to grow by 4 and 3/4% each year forever. If the company's cost of capital is 10 and 7/8%, how much is it worth? If market value of debt is $3,000,123,789.00 and Adams Corporation has 200,500,100 million shares outstanding.

How much is the firm value?

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