Information about Vortex: Equity information: Equity beta = 1.4, T-bond rate 2.5%, market risk premium =...

Information about Vortex:

Equity information: Equity beta = 1.4, T-bond rate 2.5%, market risk premium = 7%, # of shares outstanding = 15.5 millions
Debt information: Bond YTM 6.5%; Total market value of debt: $1.9 million
Tax rate = 21%
Capital structure: 40% debt, 60% equity
Current FCFF = $125 million. FCFF is expected to grow at 20%, 15%, and 10% for the next 3 years, then slow down to 5% indefinitely thereafter.

What is WACC, Firm Value, Equity Value, and Equity value per share for Vortex?

Expert Solution

jeff jeffy answered 2 years ago

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