Question: need help with #13 13. [Enterprise and Equity Value Concepts) Assume a venture has a perpetuity enterprise $800,000. Cash flows are expected to continue to
13. [Enterprise and Equity Value Concepts) Assume a venture has a perpetuity enterprise $800,000. Cash flows are expected to continue to grow at 8 percent annually and the venture's WACC is 15 percent A. Calculate the venture's enterprise value B. If the venture has $2 million in interest-bearing debt obligations, what would be the venture's equity value? C. Show how your answers to Parts A and B would change if the perpetuity cash flow growth rate was only 6 percent and the WACC was 16 percent
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