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"Problem 13-5 'TUTOR WILL YOU PLEASE PUT ANSWER ON...

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"Problem 13-5 'TUTOR WILL YOU PLEASE PUT ANSWER ON EXCEL SPREAD SHEET , THANK YOU' Value Drivers and Horizon Value of Constant Growth Firm Value-Based Management You are given the following forecasted information for the year 2014: sales = $425,000,000, operating profitability (OP) = 5%, capital requirements (CR) = 47%, growth (g) = 4%, and the weighted average cost of capital (WACC) = 9.8%. If these values remain constant, what is the horizon value (i.e., the 2014 value of operations)? (Hint: Use Equation V?op?(at time N)???=???Capital?N???+???{[Sales?N?(1???+???g)WACC-g][OP???-???WACC?(CR1???+???g)]}?.) Round your answer to the nearest dollar. $

 

Paper#5392 | Written in 18-Jul-2015

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