Estimate of the value of equity in the firm

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A firm has an expected FCFE for the following year of 150 of which 30 come from holding securities with a market value of 700, the remainder comes from the firm's operating assets. Assume a cost of equity of 12% and a constant growth rate for the cash flows from operating assets of 5%. What is your estimate of the value of equity in the firm? Choose the closest number (unless you think it cannot be determined).

Reference no: EM132481113

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