If the discount rate for the equity is 20 what is the


A firm has a debt valued at $3 million, and $0.5 million in excess cash. The equity holders will receive dividends of $0.1 million next year, and this amount will grow by 4% in perpetuity. If the discount rate for the equity is 20%, what is the enterprise value for this firm?

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Finance Basics: If the discount rate for the equity is 20 what is the
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