Question
All figures as of year 1. Pre-tax cash flow from operations = $750k. Tax rate = 40%. New fixed asset investment = $250k. Depreciation =
All figures as of year 1.
Pre-tax cash flow from operations = $750k.
Tax rate = 40%.
New fixed asset investment = $250k.
Depreciation = $125k.
Expected growth = 7%.
WACC = 13%.
Firm has no debt and NWC remains the same. What is their total equity value?
Answer Choices:
A. 1,615,156.50
B. 2,479,168,95
C. 3,333,333.33
D. 4,166,666.67
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Analysis for Financial Management
Authors: Robert C. Higgins
12th edition
1259918963, 9781260140729 , 978-1259918964
