Question for abx inc the risk premium is 6 and the risk, Ask an Expert

Finance

Question: For 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?

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92770556

Have any Question?Write your Review or question?

Related Questions in Basic Finance

1 consider an investment which has the following cash

1. Consider an investment which has the following cash flows: Year Cash flow ($) 0 (31,000) 1 10,000 2 20,000 3 10,000 4 10,000 5 5,000 Compute the: (a) payback period; (b) NPV at 14 percent cost of capital; and (c) IRR. ...

What type of data values are quantitative and the number of

What type of data values are quantitative and the number of values is finite or countable?

When when is it appropriate to use the wac as the discount

When when is it appropriate to use the wac as the discount rate in capital budgeting

Banking and finance research project -this project will

Banking and Finance Research Project - This project will further your understanding of how financial markets function. The assignment consists of two parts. Part A of the assignment focuses on the financial instruments o ...

When alice spends the day with the babysitter there is a 05

When Alice spends the day with the babysitter, there is a 0.5 chance she turns on the TV and watches a show. Her little sister Betty cannot turn on the TV by herself. But once the TV is on, Betty watches with probability ...

Corporate financewhich publicly traded stock in your

Corporate finance Which publicly traded stock in your opinion is well-positioned to perform well next year? Why?

Facebooks sales were 7878million in 2013 in 2017sales were

Facebook's sales were $7,878million in 2013. In 2017,sales were $41,050 million. What was Facebook's annual growth rate in sales during that time?

Financial derivatives and risk management assignment -1

Financial Derivatives and Risk Management Assignment - 1. Calculate the PV of $10,000 to be received in ten years under various compounding frequencies: (1) Annual compounding at 10% (2) Monthly compounding at 10% (3) Co ...

Your grandfather has agreed to deposit a certain amount of

Your grandfather has agreed to deposit a certain amount of money each year into an account paying 7.75 percent annually to help you go to graduate school. Starting next year, and for the following four years, he plans to ...

Dom grady just won the lottery and will receive annuity

Dom Grady just won the lottery and will receive annuity payments of $15,000 for each of the next 20 years, starting today (January 1, 2017). What is the present value of the annuity payments as of today, assuming a 8% in ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert