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What is the value of the equity of the firm

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Reference no: EM132541054

Question - You are given the following information about a firm:

Cost of equity is 10%

Free cash flow to equity in the current year is $3 million

Free cash flow to equity is projected to grow at a constant 5% annual rate

What is the value of the equity of the firm?

a. $66 million

b. $69.3 million

c. $46.0 million

d. $63 million

Reference no: EM132541054

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