What is the value of the equity using the free cash flow


The free cash flow to the firm is $300 million in perpetuity, the cost of equity equals 14% and the WACC is 10%. If the market value of the debt is $1.0 billion, what is the value of the equity using the free cash flow valuation approach?

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Accounting Basics: What is the value of the equity using the free cash flow
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