Question
For a given company, the initial invested capital is $3,000. For the foreseeable future, the growth rate will be 5 percent, the ROIC will be
For a given company, the initial invested capital is $3,000. For the foreseeable future, the growth rate will be 5 percent, the ROIC will be 12 percent, and the weighted average cost of capital (WACC) will be 15 percent. Using the economic profit model, estimate the value of the company.
| a. | $3,854 | |
| b. | $3,667 | |
| c. | $2,100 | |
| d. | $2,500 |
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Cost management a strategic approach
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
5th edition
73526940, 978-0073526942
