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Hasting's has 1 million shares outstanding and a target capital structure consisting of 30% debt....

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Hasting's has 1 million shares outstanding and a target capital structure consisting of 30% debt. The interest rate on the debt is 8%. Assume the risk-free rate is 5% and the market risk premium is 6%. Their marginal tax rate is 40%. Hasting's free cash flow (FCF0) is $2 million per year and is expected to grow at a constant rate of 5% a year. They have a beta of 1.4 . What is the FCFF in year 1 : What is the cost of equity? What is the after-tax cost of debt? What is the WACC: What is the value of the firm? If they have $10.82 million in debt, what is the value of the equity: What is the current price per share

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