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Eberhart Manufacturing has projected sales of $146 million next year. Costs are expected to be $81.5 million, and net investment is expected to be $15.5
Eberhart Manufacturing has projected sales of $146 million next year. Costs are expected to be $81.5 million, and net investment is expected to be $15.5 million. Each of these values is expected to grow at 17 percent the following year, with the growth rate declining by 2 percent per year until the growth rate reaches 9 percent, where it is expected to remain indefinitely. There are 6 million shares of stock outstanding and investors require a return of 16 percent on the companys stock. The corporate tax rate is 40 percent.
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