What value of equity per share using FCFF valuation model

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Point 1: The firm you are following as an analyst has FCFF of 600 million dollars and FCFE of $20 million dollars its before tax cost of debt is 3.5 percent and its required rate of return for equity is 10.8 percent. the company expects a target capital structure consisting of 30 percent debt financing and 70 percent equity financing. the tax rate is 30 percent and FCFE is expected to grow forevert at 4.0 percent. The firm has debt outstanding with a book value of 1.8 billion and a market value of 2.2 billion and has 180 million outstanding common shares.

Question 1: What is the value of equity per share using the FCFF valuation model?

Reference no: EM132487574

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