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Hello, The attached is the actual table to be use...

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Hello, The attached is the actual table to be used for calculations in the following scenerio: You are given the following forecasted information for the year 2014: sales = $300,000,000, operating profitability (OP) = 6%, capital requirements (CR) = 43%, growth (g) = 5%, 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 13-4.) The answer is: 259,375,000 How is it calculated? Thank you, Callie

 

Paper#8718 | Written in 18-Jul-2015

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