Assume the corporate tax rate for this problem is 0 the


Good Name (GN) Inc. is expecting earnings before interest and taxes of $500,00 next year in addition to depreciation expenses of $80,000, and increase in net working capital of $35,000, and an increase in capital spending of $60,000. They expect all of these to grow in perpetuity by 2% every year. GN stock has a required rate of return on equity of 8% and a yield-to-maturity on its debt of 5%. Assume the corporate tax rate for this problem is 0%. The firm's debt-to-equity ratio is currently 1.6 . what is the current value of the entire company?

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Financial Management: Assume the corporate tax rate for this problem is 0 the
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