The free cash flow to the firm is reported as $198 million. The interest expense to the firm is $15 million. If the tax rate is 35% and the net debt of the firm increased by $20 million, what is the approximate market value of the firm if the FCFE grows at 3% and the cost of equity is 14%?
A) $1,950 billion
B) $2,497 billion
C) $2,585 billion
D) $3,098 billion
Correct Answer:
Verified
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