Suppose that you are attempting to raise money for new


Suppose that you are attempting to raise money for new business venture. You estimate that your business will generate $10,000 of free-cash-flow each month in perpetuity. Say Mark Cuban offers you $2,000,000 today to help you make the initial investment but, requires that you sell him 50% of the business. Assuming your firm is all equity financed, what WACC is corresponds to Mark’s valuation?

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Financial Management: Suppose that you are attempting to raise money for new
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