Question
Franklin Industries has a current net working capital of $2.5 million. It expects that this will grow at a rate of 3.5% annually forever. If
Franklin Industries has a current net working capital of $2.5 million. It expects that this will grow at a rate of 3.5% annually forever. If it could slow that growth to 3% per year, how would that affect the value of the firm, given that it has a cost of capital of 11%?
a decrease of $2.22 million
an increase of $0.78 million
an increase of $2.08 million
an increase of $12,500
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Dave Ramseys Complete Guide To Money
Authors: Dave Ramsey
1st Edition
1937077209, 978-1937077204
