What is firm equity value using DCF approach

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Goog company has an EBIT*(1-tax) of $9,737, a depreciation of $1,851, change of NOW of $381, and a capital expenditure of $3,438. The growth rate of free cash flow is expected to be 17.68% for next two years. The beta of the firm is 1.19, the target capital structure of the firm is 6% debt 94% equity, the cost of debt is 3%, the tax rate is 40%, the market risk premium is 8% and the risk free rate is 1%. Given a comparable Price to Ebitda ratio of 14.15 and a market value of debt of $4,200, what is firm’s equity value using DCF approach?

Reference no: EM131178903

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