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Valuation of cash flow Erwin Footwear wants to determine the value of their Active Wear Division. This division has a debt with a market value

Valuation of cash flow

Erwin Footwear wants to determine the value of their Active Wear Division. This division has a debt with a market value of $12,500,00 and none preferred action. Their average capital cost is 10%. The next table represents the cash flow estimated annually from 2013 to 2016. From 2016 the company is expecting a cash flow increase to an annual rate of 4%.

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