Labrador technologies Inc. plans to become public soon. The board of directors would like to...
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Labrador technologies Inc. plans to become public soon. The board of directors would like to know the value of common equity and have asked for your opinion. The firm has $1,203,314 in preferred equity and the market value of its outstanding debt equals $3.120.626. The WACC for this form is estimated to be 8.56%. Use the DCF valuation model with the expected FCFs shown below:year i represents one year from today and so on. The company expects to grow at a 2.7% rate after Year 5. Rounding to the nearest penny, what is the value of common equity? a Period Free Cash Flow Year 1 Year 2 Year 3 Year 4 Year 5 $872,309 $1,648,482 $1,620,192 $2,673,783 $3,380,008
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