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anonymous

  • 5 years ago

How to find new firm value and new stock price if following are given: 1. old WACC 2. new WACC 3. old firm value 4. old stock price But there is no growth rate of firm given.

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  1. anonymous
    • 5 years ago
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    Old Firm Value / Old WACC = Cash Flow Cash Flow / New WACC = New Firm Value Old Firm Value/ Old Stock Price = Shares Outstanding New Firm Value/Shares Outstanding = New Stock Price Assumes no debt in firm.

  2. anonymous
    • 5 years ago
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    I guess - Old Firm Value * Old Wacc = Cash flow

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