Company b expects free cash flows to equity next year of 9


Company B expects free cash flows to equity next year of $9, and the FCFE will grow at a rate of 4% forever. B’s cost of debt is 6%, unlevered cost of capital is 11%, and cost of equity is 16%. B has D/V = 1, and expects that ratio to stay constant forever. What is Company B’s market value of equity (to 2 decimals)?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Company b expects free cash flows to equity next year of 9
Reference No:- TGS02670776

Expected delivery within 24 Hours