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29. Lamps Galore incy a manufacturer of table lamps with non-red light bulbs, earns an after-tax teturn on capital of 12%6 on its current capital

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29. Lamps Galore incy a manufacturer of table lamps with non-red light bulbs, earns an after-tax teturn on capital of 12%6 on its current capital invested ( $200 million). You expect the firm to reinvest 60% of its after-tax operating income back into the business for the next three years and 20% thereafter (the stable growth period). The cost of capital for the firm is 10%. Estimate its terminal value (at the end of the third year). -10 points 29. Lamps Galore incy a manufacturer of table lamps with non-red light bulbs, earns an after-tax teturn on capital of 12%6 on its current capital invested ( $200 million). You expect the firm to reinvest 60% of its after-tax operating income back into the business for the next three years and 20% thereafter (the stable growth period). The cost of capital for the firm is 10%. Estimate its terminal value (at the end of the third year). -10 points

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