A firm has expected free cash flows to the firm of 12


A firm has expected free cash flows to the firm of $12 million annually which are expected to grow at 3.5% each year. It uses both debt and equity. The cost of equity is 13% and the after-tax cost of debt is 7.5%. The debt to asset ratio is 40%. Calculate the value of the firm.

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Finance Basics: A firm has expected free cash flows to the firm of 12
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