Calculate the value of a company that earned 50000 this


Calculate the value of a company that earned $50,000 this year, has a 40% investment rate, K, and a tax rate of 40%; has $200,000 in debt outstanding and a weighted average cost of capital of 12%; and is expected to earn 40% on invested capital for the next five years, then 25% for the following five years, before the rate of return declines to a normal rate of growth.

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Financial Management: Calculate the value of a company that earned 50000 this
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