Question 9 5 pts Suppose that Brys compan s equired rate of

| Question 9 5 pts Suppose that Brys compan s equired rate of return on equity is 14% and their weighted average cost of capital is 11.5% what is the firm \'s total corporate value in m ons? Your answer should be between 1.28 and 6.52, rounded to 2 decimal places, with no special characters Corporation\'s projected free cash flow, for next year is FCF,-$230000, and that FCF is expected to grow at a constant rate of 6.5%. \" the

Solution

FCF₁ =230000 = 0.23 MILLION

FIRM\'S TOTAL CORPORATE VALUE = FCF₁/(WACC-g), WACC =11.5%, g =6.5%

ANSWER : FCF₁/(WACC-g) = 0.23 MILLION/(0.115-0.065) = 4.6 MILLION