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The free cash flow to the firm in the year just ended was $195 million. The interest expense to the firm was $28 million. If the tax rate is 35% and the net debt of the firm increased by $35 million, what is the market value of the firm's equity if the FCFE grows at 10% for the next 3 years and then at a constant rate of 4% thereafter? The firm's cost of equity is 12%.

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Category:- Basic Finance
Reference No.:- M948871

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