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74 Brookline Enterprises has current after-tax operating income of $100 million and a cost of capital of 10%. The firm's return on invested capital is
74
Brookline Enterprises has current after-tax operating income of $100 million and a cost of capital of 10%. The firm's return on invested capital is equal to its cost of capital. Assume that the firm is in stable growth, growing 5% a year forever.
What is the value of Brookline enterprises assuming a zero reinvestment rate and no growth?
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