What is free cash flow to the firm

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Reference no: EM131523338

Estimate Cash flow:

Net Income: $2,655

Depreciation: 1,008

NWC: 590

Gross Capital Expenditures: 788

New Preferred Stock Issued: 0

Preferred stock Dividends: 0

New Debt Issued: $1,348

Long Term Debt Repayments: 0

EBIT: $4,020

Tax Rate: 0.265

What is FCFF(Free cash flow to the firm)? What is FCFE(Free cash flow to equity)?

Assume the firm is a no-growth firm. Provide 2 estimates of firm value if WACC=0.10 and ke=0.15

Reference no: EM131523338

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