You are given the following information for a firm: EBIT this period = $18.7 million Depreciation = $2.5 million Net Working Capital Increase = $0 Asset Beta = 1.4 Capital Expenditures = $3.2 million Growth Rate of FCF = 3% Risk Free Rate = 3% Market Risk Premium = 6.3% Using the above data, what is the present value of all FCF?

You are given the following information for a firm: EBIT this period = $18.7 million Depreciation = $2.5 million Net Working Capital Increase = $0 Asset Beta = 1.4 Capital Expenditures = $3.2 million Growth Rate of FCF = 3% Risk Free Rate = 3% Market Risk Premium = 6.3% Using the above data, what is the present value of all FCF?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter12: The Cost Of Capital

Section: Chapter Questions

Problem 6P

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