Book Value Of Equity
Wednesday, August 31st, 2011

How do i calculate Current Market Value of a firm?
Given:
Annual net free cash flows are $365000.
Risk-free interest rate is 6.25%pa.
Total book value of assets of $3.1m.
Standard deviation of firms stock return is 27%.
Cost of capital of 16%.
Shareholders represent a total of at least 55% of the equity.
How can i calculate the Current Market Value of the firm using this data? I thought i needed stock price and all that, but aparently its possible… any suggestions??
ok, so would the equity then be the 55% shareholders equity of the net cash flows?
this sounds like a home work question and i am not sure either answer is correct — you might be better off going over to the homework sectoion!!!
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