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Number 2 please. I don't get what the growth rate is for? Here's selected information from a company's financial statements (problems-1-6): 1 Revenue $200,000 Current
Number 2 please. I don't get what the growth rate is for?
Here's selected information from a company's financial statements (problems-1-6): 1 Revenue $200,000 Current Assets $100,000 Costs of goods $100,000 "Fixed Assets $300,000 Gross Profit $100,000 Long term debt $150,000 Operating Expenses $70,000 Stockholder Equity $200,0001 Operating Profit $30,000 WACC 10% Interest $10,000 Cost of equity 9% Pretax profit$20,000 Taxes $40001 Net Income $60009 1. If depreciation is-60% of operating-expenses, capital expenditures are $50,000, and there is no change in net-working capital, what is the company's FCFF?1 2. If depreciation-is-60% of operating expenses, capital expenditures are $50,000, net-new-debt is $40,000 and there is no change in net working capital, what is the company's value based on FCFE-if-you-assume constant growth of 4%?-1 Here's selected information from a company's financial statements (problems-1-6): 1 Revenue $200,000 Current Assets $100,000 Costs of goods $100,000 "Fixed Assets $300,000 Gross Profit $100,000 Long term debt $150,000 Operating Expenses $70,000 Stockholder Equity $200,0001 Operating Profit $30,000 WACC 10% Interest $10,000 Cost of equity 9% Pretax profit$20,000 Taxes $40001 Net Income $60009 1. If depreciation is-60% of operating-expenses, capital expenditures are $50,000, and there is no change in net-working capital, what is the company's FCFF?1 2. If depreciation-is-60% of operating expenses, capital expenditures are $50,000, net-new-debt is $40,000 and there is no change in net working capital, what is the company's value based on FCFE-if-you-assume constant growth of 4%?-1Step by Step Solution
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