Victoria Enterprises expects earnings before interest and taxes (EBIT) next year of $2.3 million. Its depreciation and
Question:
Victoria Enterprises expects earnings before interest and taxes (EBIT) next year of
$2.3 million. Its depreciation and capital expenditures will both be $310,000, and it expects its capital expenditures to always equal its depreciation. Its working capital will increase by $50,000 over the next year. Its tax rate is 22%. If its WACC is 10% and its FCFs are expected to increase at 6% per year in perpetuity, what is its enterprise value?
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9781292437156
5th Global Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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