Victoria Enterprises expects earnings before interest and taxes

(EBIT)

next year of

$1.4

million. Its depreciation and capital expenditures will both be

$289,000,

and it expects its capital expenditures to always equal its depreciation. Its working capital will increase by

$48,000

over the next year. Its tax rate is

40%.

If its WACC is

10%

and its

FCFs

are expected to increase at

4%

per year in perpetuity, what is its enterprise value?

Victoria Enterprises expects earnings before interest and taxes (EBIT) next year of $1.4 million. Its depreciation and capital expenditures will both be $289,000 and it expects its capital expenditures to always equal its depreciation. Its working capital will increase by 548,000 over the next year. Its tax rate is 40%. If its WACC is 10% and its FCFs are expected to increase at 4% per year in perpetuity, what is its enterprise value? The company's enterprise value is $. (Round to the nearest dollar.)