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Assuming that the business will continue indefinitely, how much would the value of the firm be? Problem 5: Economic Value Added and Capitalization of Earnings

Assuming that the business will continue indefinitely, how much would the value of the firm be?

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Problem 5: Economic Value Added and Capitalization of Earnings You are making a proposal to start a corporation that would require invested capital of P6,000,000. You estimate that the weighted average cost of capital will be 9% while the annual earnings will be P700,000

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