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as is planning to val 4. Watson Thomas is ue BCC Corporation, a provider of...

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as is planning to val 4. Watson Thomas is ue BCC Corporation, a provider of a variety of als. Thomas uses a single-stage FCFF approach. The financial information Thomas has assembled for his valuation is as follows: I. The II. The market value of its debt is $3.192 billion. III. The FCFF is currently $1.1559 billion. IV. The equity beta is 0.90; the equity risk premium is 5.5 percent, the risk-free rate is e company has 1,852 million shares outstanding. 5.5 percent. The before-tax cost of debt is 7.0 percent. The tax rate is 40 percent. To calculate WACC, he will assume the company is financed 25 percent with debt. The FCFF growth rate is 4 percent. V. VI. VII. VIII. Using Thomas' information, calculate the following: A) WACC. B) Value of the firm. C) Total market value of equity. D) Value per share

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