Estimate Cash flow:
Net Income: $2,655
Depreciation: 1,008
NWC: 590
Gross Capital Expenditures: 788
New Preferred Stock Issued: 0
Preferred stock Dividends: 0
New Debt Issued: $1,348
Long Term Debt Repayments: 0
EBIT: $4,020
Tax Rate: 0.265
What is FCFF(Free cash flow to the firm)? What is FCFE(Free cash flow to equity)?
Assume the firm is a no-growth firm. Provide 2 estimates of firm value if WACC=0.10 and ke=0.15