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Business, 13.11.2019 05:31 lesliealvarado1022

Pinnacle enterprises is expected to have next year’s free cash flow of $14 million. fcf is expected to grow at 5% per year into foreseeable future. pinnacle’s cost of equity capital is 15%, cost of debt is 8%, and it is in the 40% corporate tax bracket. pinnacle currently maintains a 0.4 debt to equity ratio. what would be the value of pinnacle as an all equity firm would?

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Pinnacle enterprises is expected to have next year’s free cash flow of $14 million. fcf is expected...
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