What is the value of equity

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or ABX Inc., the risk premium is 6% and the risk free rate is 3%. The firm’s corporate income tax rate is 30% and the debt-to-equity ratios is 40%. The total market value of debt is $120M.  Its equity beta is 1.5. Its free cash flow is $30M and is expected to grow at a constant rate of 5% forever. What is the value of equity?

A. $506.09

B. $623.67

C. $358.56

D. $390.34

E. $402.41

Reference no: EM131493459

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