EMC Corporation has never paid a dividend

Apr 15th, 2015
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2. EMC Corporation has never paid a dividend. Its current free cash flow is $510,000 and is expected to grow at a constant rate of 5%. The weighted average cost of capital is WACC = 9%. Calculate EMC's equity value if the net debt is $750,000.

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2.EMCCorporationhasneverpaidadividend.Itscurrentfreecashflowis$510,000andisexpectedtogrowataconstantrateof5%.TheweightedaveragecostofcapitalisWACC=9%.CalculateEMC'sequityvalueifthenetdebtis$750,000.SolutionDataV = value CF = cash flow = $510000g =

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