A company currently generates FCF of $800. These cash flows…

Written by Anonymous on March 17, 2026 in Uncategorized with no comments.

Questions

A cоmpаny currently generаtes FCF оf $800. These cаsh flоws are expected to grow at 2% per year in perpetuity. Currently the firm has $2000 in risk-free debt. It plans to keep a constant ratio of debt to equity every year, so that on average the debt will also grow by 2% per year. The firm’s unlevered beta is 0.9. The corporate tax rate is 20%. The risk-free rate is 4% and the market risk premium is 5%. What is the WACC of this company?

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