10.

Big Muddy Casino expects eamings before interest and taxes (EBIT) next year of $1 million. Its depreciation and capital expenditures will both be $300. coc each, and it oxpects is capital expenditures to always oqual its depreciation. Its working capital will increase by $50,000 over the noxt year. The tax rate is 403 and the cost of capitil is 10 . Flows after the next year (inclusive of the impact of working capital) are expected to increase at 5% per year in perpetuity. What is iss enterprise value? a. $21.4 million b. $15.2 million S34.6 mithon d. $11.0 milion Big Muddy Casino expects eamings before interest and taxes (EBIT) next year of $1 million. its deprociation and capital expenditures will both be $500,000 each. and it expects its capital expenditures to always equal its depreciation. Its working capital will increase by $50,000 over the next year. The tax fato is 400 and the cost of capital is 10 in . its Free Cast Flows after the next year (inclusive of the impact of working capital) are expected to increase at 5% per year in perpetuity. What is is enterprise value? a. $21.4 mittion b. $15.2 million 5. 531,5 miltiont d. $11.0 malion