It is known that PT Bae Suzy's Cash Flow from Assets (CFFA) at the end of 2021 is IDR 250,000,000,-; The CFFA is estimated to grow forever by 3%. So what is the Company Value of PT Bae Suzy at the end of 2021? You are also supported with the following data: 1.Yield government bond : 5% 2. state bond coupon : 6% 3.Expected Market return : 16% 4.Beta PT Bae Suzy : 1,2 5.Cost of debt :9% 6.Tax rate :25% 7. Debt to Equity Ratio : 1,3

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter2: The Domestic And International Financial Marketplace
Section: Chapter Questions
Problem 4P
icon
Related questions
Question
100%
It is known that PT Bae Suzy's Cash Flow from Assets (CFFA) at the end of
2021 is IDR 250,000,000,-; The CFFA is estimated to grow forever by 3%.
So what is the Company Value of PT Bae Suzy at the end of 2021?
You are also supported with the following data:
1.Yield government bond : 5%
2. state bond coupon : 6%
3.Expected Market return : 16%
4.Beta PT Bae Suzy : 1,2
5.Cost of debt :9%
6.Tax rate :25%
7. Debt to Equity Ratio : 1,3
Transcribed Image Text:It is known that PT Bae Suzy's Cash Flow from Assets (CFFA) at the end of 2021 is IDR 250,000,000,-; The CFFA is estimated to grow forever by 3%. So what is the Company Value of PT Bae Suzy at the end of 2021? You are also supported with the following data: 1.Yield government bond : 5% 2. state bond coupon : 6% 3.Expected Market return : 16% 4.Beta PT Bae Suzy : 1,2 5.Cost of debt :9% 6.Tax rate :25% 7. Debt to Equity Ratio : 1,3
Expert Solution
steps

Step by step

Solved in 5 steps

Blurred answer
Knowledge Booster
Free Cash Flow Valuation Method
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT