Explain what is the market value of equity if the fcfe

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FinCorp's free cash flow to the firm is reported as $215 million. The firm's interest expense is $22 million. Assume the tax rate is 35% and the net debt of the firm increase by $5 million.

What is the market value of equity if the FCFE is projected to grow at 5% indefinitely and the cost of equity is 8% ?

Enter your answer in millions. Round your answer to 2 decimal places

Reference no: EM1360653

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