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Business, 27.12.2020 15:20 enorton

Costco Wholesale Corp. has FCFE of $2.00 billion in the most recent year. The cash flows are expected to grow at the annual rate of 3%. Costco has the weighted average cost of capital of 9% and the cost of equity of 12%. The book value of debt is $20.72 billion and the market value of debt is $24.44. Given these assumptions, which of the following is closest to the current firm value of Costco? a. $47.3 billion
b. $43.6 billion
c. $58.8 billion
d. $46.7 billion

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