Question: Chapter 10 - Q1: Please answer the following question in the image below. There may be multiple answers as noted by the empty boxes. Thank

Chapter 10 - Q1: Please answer the following question in the image below. There may be multiple answers as noted by the empty boxes. Thank you!

Chapter 10 - Q1: Please answer the following question in the image

Victoria Enterprises expects earnings before interest and taxes (EBIT) next year of $1.6 million. Its depreciation and capital expenditures will both be $307,000, and it expects its capital expenditures to always equal its depreciation. Its working capital will increase by $47,000 over the next year. Its tax rate is 22%. If its WACC is 11% and its FCFs are expected to increase at 6% per year in perpetuity, what is its enterprise value? The company's enterprise value is $ (Round to the nearest dollar.)

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