What is the enterprise value of your? firm

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Question: Your firm expects to have EBIT of ?$ 3?,000 every year into perpetuity. Your? firm's depreciation is expected to be the same as its capital expenditures every? year, and there are no expected changes to its net working capital going forward. The discount rate on its free cash flows is 8.4?% and the corporate tax rate is 22.9?%.

a. What is the enterprise value of your? firm?

b. If your firm has no debt in its capital? structure, what is the value of your? firm's equity? Assume no excess cash.

c. If your firm has perpetual debt of ?$ 23?,000, what is the value of the? equity?

 

Reference no: EM133332064

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