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Eberhart Manufacturing has projected sales of $ 147 million next year. Costs are expected to be $ 82 million and net investment is expected to
Eberhart Manufacturing has projected sales of $147 million next year. Costs are expected to be $82 million and net investment is expected to be $16 million. Each of these values is expected to grow at 15 percent the following year, with the growth rate declining by 2 percent per year until the growth rate reaches 7 percent, where it is expected to remain indefinitely. There are 6.5 million shares of stock outstanding and investors require a return of 14 percent return on the company's stock. The corporate tax rate is 35 percent.(Do not round intermediate calculations andround your answer to 2 decimal places. (e.g., 32.16))
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