题目
题目

COMM_V 370 101-108 2025W1 COMM 370 - 2025W1 - Final - Requires Respondus LockDown Browser

单项选择题

Regarding the valuation of levered companies, select the correct statement:

选项
A.Discounting the (unlevered) free cash flow at the cost of equity gives the value of the firm’s equity.
B.Discounting the free cash flow to equity at the cost of equity gives the value of the firm’s equity, excluding the value of interest tax shields.
C.Discounting the free cash flow to equity at the cost of equity gives the total value of the firm.
D.Discounting the free cash flow to equity at the cost of equity gives the value of the firm’s equity, including the value of the interest tax shields.
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标准答案
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思路分析
Question restatement: The topic is the valuation of levered companies, asking which statement is correct regarding discounting methods and what is captured in the resulting value. Option 1: 'Discounting the (unlevered) free cash flow at the cost of equity gives the value of the firm’s equity.' This mixes concepts improperly. Unlevered free cash flow (FCF) is the cash flow available to all capital providers, not just equity holders, and it is typically disc......Login to view full explanation

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类似问题

Last year, the Clarity Corporation had Free Cash Flow (FCF) of $950.  Some other financial information from last year: Clarity paid $520 in dividends to its shareholders Clarity paid $250 in interest Clarity's depreciation expense was $120  Clarity repaid $65 of existing debt and issued new debt of $145 Clarity's corporate tax rate is 30% Calculate Clarity's Free Cash Flow to Equity (FCFE) last year (with one decimal).

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Suppose you have estimated the free cash flows to equity holders over the next five years as follows: Year 1: $33.2 million Year 2: $35.8 million Year 3: $42.3 million Year 4: $36.9 million Year 5: $40.5 million You expect FCFE to remain constant at $38.6 million after year 5. If the company’s cost of equity is 13%, the WACC is 12%, the YTM is 10%, and the tax rate is 34%, then what is the value of the firm’s equity (in millions)?

What is the Last FAD's FCFE in the current year?

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