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Business, 15.10.2019 22:30 naleyah

Grammy phone is a cellular firm that reported a net income of $50 million in the most recent financial year. the firm had $1 billion in debt, on which it reported interest expenses of $100 million in the most recent financial year. the firm had depreciation of $100 million for the year and capital expenditures were 200% of depreciation. the firm had a cost of capital of 11%. assuming that there is no working capital requirement, and using a constant growth rate of 4% in perpetuity, estimate the value of the firm. also assume that the risk premium is 5.5% and the tax rate is 40%.

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