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5. The value of a company's invested capital is $50,000. The forecast ROIC for the foreseeable future is 15%, assuming a constant growth rate of
5. The value of a company's invested capital is $50,000. The forecast ROIC for the foreseeable future is 15%, assuming a constant growth rate of 6% per year and a WACC of 11% during the same period of time. What is the value of operations today? In other words, what is the value today, at the horizon, of all future cash flows beyond the horizon? For this problem, ignore mid-year discounting. a. $70,000 b. $72,000 . $90,000 d. $120,000
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