question archive In the recent year the “D&V Corporation” earned $75 million before interest and taxes
Subject:FinancePrice:2.86 Bought3
In the recent year the “D&V Corporation” earned $75 million before interest and taxes. Capital expenditures were $25 million, and depreciation was $50 million, working capital expenses were $10 million. The firm's WACC is 16%, the marginal tax rate is 20%, and the expected future cash flow growth rate is 6%. The market value of debt is $650 million. Please calculate the value of the firm's equity.
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