Determine current total value of given company


Beach & Company reported net income of $40 million for last year. Depreciation expense totaled $18 million and capital expenditures came to $8 million. Free cash flow is anticipated to grow at the rate of 5% for foreseeable future. Beach faces the 40% tax rate and has 0.40 debt to equity ratio with $200 million (market value) in debt outstanding. Beach's equity beta is 1.25, risk-free rate is presently 4.5% and market risk premium is evaluated to be 8.0%. Determine current total value of Beach & Company (in millions)?

Request for Solution File

Ask an Expert for Answer!!
Mathematics: Determine current total value of given company
Reference No:- TGS0867438

Expected delivery within 24 Hours