(135) Value Drivers and Horizon Value of Constant Growth Firm You are given the following forecasted information...
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(13–5)
Value Drivers and Horizon Value of Constant Growth Firm You are given the following forecasted information for the year 2014: sales =
$300,000,000, operating profitability (OP) = 6%, capital requirements (CR) = 43%, growth (g) = 5%, and the weighted average cost of capital (WACC) = 9.8%. If these values remain constant, what is the horizon value (i.e., the 2014 value of operations)?
(Hint: Use Equation 13-4.)
INTERMEDIATE PROBLEMS 6–7
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Related Book For 
Financial Management Theory And Practice
ISBN: 9781439078105
13th Edition
Authors: Eugene F. Brigham, Michael C. Ehrhardt
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