What is company market value of equity

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Company B expects free cash flows to equity next year of $9, and the FCFE will grow at a rate of 4% forever. B’s cost of debt is 6%, unlevered cost of capital is 11%, and cost of equity is 16%. B has D/V = 1, and expects that ratio to stay constant forever. What is Company B’s market value of equity (to 2 decimals)?

Reference no: EM131875283

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