You are given the following forecast information for the year 2015: Sales = $300,000,000; Operating profitability (OP)

Question:

You are given the following forecast information for the year 2015: Sales = $300,000,000; Operating profitability (OP) = 6%; Capital requirements (CR) = 43%; Growth (g) = 5%; and the weighted average (WACC) = 9.8%. If these values remain constant, what is the 2015 value of operations?
Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...