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Calculate the value of the firm onefun

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Reference no: EM133113746

ONEFUN is a so-called all-equity company. This company has invested in only one project called LIVE. This project LIVE has expected 2 million dollar cash flow (after-tax) one year from now. This cash flow is expected to grow 1% annually forever.

- the risk-free rate of return = 2%

- expected market return = 8%

- project beta = 1.5

REQUIRED: Calculate the value of the firm ONEFUN

Reference no: EM133113746

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