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  3. a firm's unlevered cash flow is $120/year and its

A firm's unlevered cash flow is $120/year and its (levered) equity cash flow is $100/year....

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Finance

A firm's unlevered cash flow is $120/year and its (levered) equity cash flow is $100/year. The unlevered cost of capital is 12%, the cost of equity is 16.67% and the wacc is 10.91%. What is the value of the equity if all the cash flows are constant forever? "

$700

$600

$9000

$500

$800

Answer & Explanation Solved by verified expert
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