Unlega s equity. Vijay Limited has an invested capital of 100 million. Its return on invested capital (ROIC) is 14 percent and its weighted average cost of capital (WACC) is 12 percent. The expected growth rate in Vijay Limited revenues and invested capital will be 20 percent for the first four years, 12 percent for the following three years, and 10 percent thereafter forever. 

(a) Calculate the enterprise DCF value of Vijay Limited .

b) Calculate the enterprise value of Vijay Limited using the economic profit model.

Answer rating: 100% (QA)

ANSWER A The enterprise value which can also be called firm value or asset value is the total value of the assets of the business excluding cash When ... View the full answer