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Mystery Inc generated FCFF of $2450 and FCFE of $2100 in the most recent year. The...

Mystery Inc generated FCFF of $2450 and FCFE of $2100 in the most recent year. The firm will grow at a rate of 3% for the forseeable future. The book value and market value of MakeUp's debt are $19000 and $17,000, respectively. The firm's WACC is 9% and the firm's tax rate is 34%. Which of the following is closest to the value of the equity stake in the firm? Round your answer to the nearest $1000.
  • $24,000
  • $23,000
  • $35000
  • $25,000
  • $18,000
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Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

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