How much are your cash flows today

Reference no: EM133665199

Problem: Sport L&K Company produces annual cash flows of $831 dollars and is expected to exist forever. The company is currently financed with 76 percent equity. Your analysis tells you that the appropriate discount rates are 9.32 percent for the cash flows, and 7.78 percent for the debt. You currently own 10 percent of the shares. Assume that all conditions identified by the M&M Proposition 1 apply. How much are your cash flows today?

Reference no: EM133665199

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