Victoria Enterprises expects carnings before interest and taxes (EBIT) next year o Si million. Its depreciation...
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Victoria Enterprises expects carnings before interest and taxes (EBIT) next year o Si million. Its depreciation and capital expenditures will both be S300,000 cach, and it expects its capital expenditures to always equal its depreciation. Its working capital will increase by $50,000 over the next vear. The tax rate is 40% and the cost of capital is 10%. Its Free Cash Flows after the next year (inclusive of the impact of working capital) are expected to increase at 5% per year in perpetuity, what is its enterprise value? a. $11.0 million $15.2 million $21.4 million $31.6 million b. с. d. Victoria Enterprises expects carnings before interest and taxes (EBIT) next year o Si million. Its depreciation and capital expenditures will both be S300,000 cach, and it expects its capital expenditures to always equal its depreciation. Its working capital will increase by $50,000 over the next vear. The tax rate is 40% and the cost of capital is 10%. Its Free Cash Flows after the next year (inclusive of the impact of working capital) are expected to increase at 5% per year in perpetuity, what is its enterprise value? a. $11.0 million $15.2 million $21.4 million $31.6 million b. с. d.
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