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What is value of firm today if tax rate is twenty percent

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Reference no: EM132706267

Problem 1: A firm is expected to grow in perpetuity at a rate of 5%. If the current year free cash flow is 15 million, the cost of equity is 16%, after-tax cost of debt is 9% and the target debt to equity ratio is 0.25, then what is the value of this firm today if the tax rate is 20%?

Reference no: EM132706267

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