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3) A company has capital of $200 million. It has an EROIC of 9%, forecasted constant growth of 5%, and a WACC of 10%. What
3) A company has capital of $200 million. It has an EROIC of 9%, forecasted constant growth of 5%, and a WACC of 10%. What is its value of operations? What is its intrinsic MVA? (Hint: Use Equation is shown below.) Capitaly(EROICN - WACC) Vopat time N) = Capitaly + WACC-8 (OPN+1 CRN WACC - 8 Capitaly = Capitaly + WACC
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Corporate Financial Management
Authors: Glen Arnold
4th Edition
0273719068, 978-0273719069
