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Suppose that Firm U and L, are growing at a constant rate of 7% and that the investments in net operation assets required to support
- Suppose that Firm U and L, are growing at a constant rate of 7% and that the investments in net operation assets required to support this growth is 10% if EBIT.Use the compressed adjusted present value (APV) model to estimate the value of U and L.Also estimate the levered cost of equity and the weighted average cost of capital.
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
6th edition
1305968352, 978-1337635653, 978-1305968356
