Question
MazeRunners net income is reported as $4,200,000. The firms depreciation is $420,000. Assume the capital spending is $924,000 and the working capital of the firm
MazeRunners net income is reported as $4,200,000. The firms depreciation is $420,000. Assume the capital spending is $924,000 and the working capital of the firm increases by $294,000. What is the market value of equity if the FCFE is projected to grow at 2.8% indefinitely and the cost of equity is 8%?
a. $67,254,923.08
b. $43,715,700
c. $121,500,000
d. $65,423,076.92
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Principles of Managerial Finance
Authors: Chad J. Zutter, Scott B. Smart
15th edition
013447631X, 134476315, 9780134478197 , 978-0134476315
