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Business, 28.06.2019 19:30 he0gaubong

The free cash flow to the firm is $300 million in perpetuity, the cost of equity equals 14%and the wacc is 10%. if the market value of the debt is $1.0 billion, what is the value of theequity using the free cash flow valuation approach? 1. $1 billion2. $2 billion3. $3 billion4. $4 billion

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