The free cash flow to the firm is reported as $205 million. The interest expense to the firm is $22 million. If the tax rate is 35% and the net debt of the firm increased by $25 million, what is the approximate market value of the firm if the FCFE grows at 2% and the cost of equity is 11%?
A) $2,168 billion
B) $2,445 billion
C) $2,565 billion
D) $2,998 billion
Correct Answer:
Verified
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