What is the free cash flow to firm

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Reference no: EM132798321

1. What is the Free Cash Flow to this Firm? , which has:

- Cash Flow from Operations = $10,000m

- Capital Expenditure = $2,000m

- Interest Expense = $500m

- Corporation Tax = 25%

2. Find the Enterprise Value of MNO Corporation by modelling it as a perpetuity with growth.

- Free Cash Flow to Firm = $3,000m

- Growth in FCFF = 4% every year

- WACC = 8% every year

Once you have calculated Enterprise Value, use the following information to calculate the Equity value, and price per share.

- Cash on Balance Sheet = $5,000m

- Total Debt = $12,000m

- Number of Shares = 2,000m

Reference no: EM132798321

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