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4 8. (10 pts) Calculate the value of the firm given that the EBIT $40, interest expenses are $5.54, and the change in working capital
4 8. (10 pts) Calculate the value of the firm given that the EBIT $40, interest expenses are $5.54, and the change in working capital is $3, depreciation expenses of $10, and capital expenditures of $5, growth in free cash flows of 4%,, tax rate of 21%, and debt to equity ratio of 0.6 (with $100 in debt). The current equity beta is 1.4, risk free rate is 3.5%, and the market risk premium is 6%. The company pays no dividend
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