Question
Given the following information ItemsYear 2023 2024 2025 Terminal year (2026) EBIT 9.02 12.72 18.15 28.37 FCInv 1.25 1.77 2.62 3.85 WCInv 1.96 2.02 3.31
Given the following information
| Items\Year | 2023 | 2024 | 2025 | Terminal year (2026) |
| EBIT | 9.02 | 12.72 | 18.15 | 28.37 |
| FCInv | 1.25 | 1.77 | 2.62 | 3.85 |
| WCInv | 1.96 | 2.02 | 3.31 | 4.73 |
Assume that tax rate is 0.3. Year 2026 is the terminal year. After 2026, the firm's FCFF will grow at 5% forever. Finally, assume that the firm's discount rate is 12%. What is the value of the firm?
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Intermediate Financial Management
Authors: Brigham, Daves
10th Edition
978-1439051764, 1111783659, 9780324594690, 1439051763, 9781111783655, 324594690, 978-1111021573
