Question: Hello, kindly help me solve this problem about the Investment value at the horizon (continuous). You receive the following projected information for 2009: Sales =
Hello, kindly help me solve this problem about the Investment value at the horizon (continuous).
You receive the following projected information for 2009:
Sales = $ 300,000,000;
Operational profit (OP) = 6%;
Capital needs (CN) = 43%;
Growth (g) = 5%;
Weighted average cost of capital (WACC) = 9.8%.
If the values do not change, what will the continuing value be (that is, the value of operations in 2009)?
Reference book:
Corporate Finance: A Focused Approach by Ehrhardt and Brigham Second Edition
Thanks!
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