Victoria enterprises expects earnings before interest and


Victoria Enterprises expects earnings before interest and taxes (EBIT ) next year of $1.2 million. Its depreciation and capital expenditures will both be $313,000 , and it expects its capital expenditures to always equal its depreciation. Its working capital will increase by $53,000over the next year. Its tax rate is 35%. If its WACC is 8% and its FCFs are expected to increase at 6% per year inperpetuity, what is its enterprisevalue?

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Finance Basics: Victoria enterprises expects earnings before interest and
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