Discuss appropriate discount rate for? kohwe''s future free

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Kohwe Corporation plans to borrow $ 52.2 million to finance a new investment. The firm will pay interest only on this loan each? year, and it will maintain an outstanding balance of $ 52.2 million on the loan. Suppose that? Kohwe's corporate tax rate is 40 % and expected free cash flows are $ 9.9 million each year. Kohwe currently has 5 million shares? outstanding, and it has no other assets or opportunities. Suppose the appropriate discount rate for? Kohwe's future free cash flows is 8.4 %. What is?Kohwe's share price today if the investment is financed with? debt?

Reference no: EM131714641

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