Question
Wallflower Art Company is expected to have an EBIT of $200,000 next year. Depreciation is expected to be $15,000 next year. These are expected to
Wallflower Art Company is expected to have an EBIT of $200,000 next year. Depreciation is expected to be $15,000 next year. These are expected to grow over the next 4 years at 8% per year. After year 5, the adjusted cash flow from assets is expected to grow at a rate of 5% forever. The company has a WACC of 6% and a corporate tax rate of 40%. What is the value of the company?
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Investments An Introduction
Authors: Herbert B Mayo
11th Edition
1133936520, 9781133936527
