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Given Are the Following Data for Outsource Company: PV (Of

Question 17

Multiple Choice

Given are the following data for Outsource Company: PV (of FCFs for years 1-3) = $35 million; PV (horizon value) = $65 million. Suppose that the market value of the debt = $30 million. Calculate the total market value of equity of the firm.


A) $100 million
B) $70 million
C) $30 million
D) $35 million

Correct Answer:

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