What is the total value of eline equity

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Case: ELINE Company has FCFF of $ 1.7 billion and FCFE of $ 1.3 billion. ELINE ' s WACC is 11 percent, and its required rate of return for equity is 13 percent. FCFF is expected to grow forever at 7 percent, and FCFE is expected to grow forever at 7.5 percent. ELINE has debt outstanding of $ 15 billion.

A. What is the total value of ELINE ' s equity using the FCFF valuation approach?

B. What is the total value of ELINE ' s equity using the FCFE valuation approach?

Reference no: EM133290914

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