Question 2 1 pts Find the value of the firm with a WACC of 12% and a tax rate of 21%. Its current (year 0) cashflows are $11m. Analysts expect these to grow at 11% for two years and then to settle out at a constant growth rate of 2%.
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Year 0: $11m Year 1: $11m * (1 + 11%) = $12.21m Year 2: $12.21m * (1 + 11%) = $13.5531m Year 3 and onwards: $13.5531m * (1 + 2%) = $13.823162m Show more…
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