The aa company has sales of 200 million usd, cogs of 110 million usd, sga of 10 million usd. current capital expenditure is 20 million usd. depreciation of 20 million, change in net working capital of 8 million and interest rate expenses yearly of 6 million. the company has 100 million of debt outstanding, and a 20% tax rate. determine the current fcff. if the wacc is 10%, and the cost of equity is 17.4%. what is the value of the equity, using the free cash flow method, if fcff grows at 3% in perpetuity

The east asiatic company (eac), a danish company with subsidiaries throughout asia, has been funding its bangkok subsidiary primarily with u.s. dollar debt because of the cost and availability of dollar capital as opposed to thai baht-denominated (b) debt. the treasurer of eac-thailand is considering a 1-year bank loan for $247,000.the current spot rate is b32.03 /$, and the dollar-based interest is 6.78% for the 1-year period. 1-year loans are 12.04% in baht.a. assuming expected inflation rates of 4.3 % and 1.24% in thailand and the united states, respectively, for the coming year, according to purchase power parity, what would the effective cost of funds be in thai baht terms? b. if eac's foreign exchange advisers believe strongly that the thai government wants to push the value of the baht down against the dollar by5% over the coming year (to promote its export competitiveness in dollar markets), what might the effective cost of funds end up being in baht terms? c. if eac could borrow thai baht at 13% per annum, would this be cheaper than either part (a) or part (b) above?