Calculate the value of the equity at the end of given year

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Reference no: EM131487013

Question: A Discounted Cash Flow Valuation (Easy) At the end of2012, you forecast the following cash flows (in millions) for a firm with net debt of $759 million:

You forecast that free cash flow will grow at a rate of 4 percent per year after 2015. Use a required return of l 0 percent in answering the following questions.

a. Calculate the firm's enterprise value at the end of 2012.

b. Calculate the value of the equity at the end of 2012.

Reference no: EM131487013

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