Question: Assuming that the business will continue indefinitely, how much would the value of the firm be? Problem 5: Economic Value Added and Capitalization of Earnings

Assuming that the business will continue indefinitely, how much would the value of the firm be?

Assuming that the business will continue indefinitely, how much would the value

Problem 5: Economic Value Added and Capitalization of Earnings You are making a proposal to start a corporation that would require invested capital of P6,000,000. You estimate that the weighted average cost of capital will be 9% while the annual earnings will be P700,000

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