A firm has provided you with the following financial data: 1. What is the...
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Accounting
A firm has provided you with the following financial data:
1. What is the firm's proportion of debt in the capital structure?
Select one:
a. 40.4%
b. None of the above are correct solutions.
c. 29.2%
d. 37.5%
e. 25.6%
2. What is the firm's WACC?
Select one:
a. 12.3%
b. 11.0%
c. 11.75%
d. None of the above are correct solutions.
e. 10.85%
3. What is the value of the firm?
Select one:
a. $145,985,402
b. None of the above are correct solutions.
c. $108,886,940
d. $122,198,221
e. $110,866,542
A firm has provided you with the following financial data: Free Cash Flow to the Firm (FCFF) at t=1 $10,000,000, Target Debt/Equity Ratio 0.60 Market value of debt $20,000,000 Required return on equity 14% Cost of debt 8% Long run growth rate in FCFF 4% Tax rate 30% Number of shares outstanding 4,000,000
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