Problem
Proust Company has FCFF of $1.31 billion and FCFE of $1.71 billion. Proust's WACC is 9.18 percent, and its required rate of return for equity is 12.93 percent. The analyst expects FCFF and FCFE to both grow forever at 5.71 percent. Proust has debt outstanding of $14.88 billion. What is the total value of Proust's equity using the FCFF (Free Cash Flow to the Firm) valuation approach?