Projected Year: $1234567$For ABC Co$.,$the projected cash flow components $($in $mil $)$ during the projection period are

as stated. Marginal tax rate is $35\%$ and WACC is $10\%.$ The growth rate is projected to

be $7\%$ for free cash flows during the horizon period after the terminal year. Using mid$-$year

convention method:

What is the Enterprise Value for ABC Co$?(7\mathrm{.}5$ Points$)$

A$)$ $$22\mathrm{.}33$

B$)$ $$24\mathrm{.}33$

C$)$ $$40\mathrm{.}43$

D$)$ $$39\mathrm{.}33$

E$)$ $$37\mathrm{.}25$

Net Capital Spending $1\mathrm{.}801\mathrm{.}902\mathrm{.}202\mathrm{.}162\mathrm{.}303\mathrm{.}003\mathrm{.}25$

Depreciation $0\mathrm{.}500\mathrm{.}750\mathrm{.}900\mathrm{.}951\mathrm{.}101\mathrm{.}251\mathrm{.}50$

EBIT $2\mathrm{.}503\mathrm{.}504\mathrm{.}104\mathrm{.}505\mathrm{.}106\mathrm{.}007\mathrm{.}10$

Change in NWC $0\mathrm{.}200\mathrm{.}250\mathrm{.}300\mathrm{.}400\mathrm{.}600\mathrm{.}701\mathrm{.}10$

For ABC Co$.,$the projected cash flow components $($in $mil$)$ during the projection period are as stated. Marginal tax rate is $35\%$ and WACC is $10\%.$ The growth rate is projected to be $7\%$ for free cash flows during the horizon period after the terminal year. Using mid$-$year convention method:

What is the Enterprise Value for ABC Co $?(7\mathrm{.}5$ Points$)$

Question $5$ options:

A$)$

$$22\mathrm{.}33$

B$)$

$$24\mathrm{.}33$

C$)$

$$40\mathrm{.}43$

D$)$

$$39\mathrm{.}33$

E$)$

$$37\mathrm{.}25$