Question
urgently help London Corporation is expected have EBIT of $3,200,000 this year. London Corporation is in the 35% tax bracket, will report $1,100,000 in depreciation,
urgently help
London Corporation is expected have EBIT of $3,200,000 this year. London Corporation is in the 35% tax bracket, will report $1,100,000 in depreciation, will make $1,200,000 in capital expenditures, and will have no change in net working capital this year. The appropriate market capitalization rate for the unleveraged cash flow is 11% per year, and the firm currently has debt of $4,500,000 outstanding. London Corporation expects that their free cashflow will grow by 4% per year forever. Use the free cash flow approach to value the firms equity. [ Select ] ["$28,285,714", "$23,785,714", "$28,181,818", "$26,642,857"]
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