13.4 - Vop = $200,000,000($200,000,000 (0.10 – 0.05(0.09...

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13-4 A company has capital of $200 million. It has an EROIC of 9%, forecasted constant growth of 5%, and a WACC of 10%. What is its value of operations? What is its intrinsic MVA? (Hint: Use Equation 13-5.)
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Unformatted text preview: Vop = $200,000,000 + ($200,000,000 ÷ (0.10 – 0.05)) * (0.09 – 0.10) Vop = $200,000,000 - $40,000,000 Vop = $160,000,000 MVA = $160,000,000 - $200,000,000 = ($40,000,000)...
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This note was uploaded on 04/06/2012 for the course FINANCE 410 taught by Professor N/a during the Spring '09 term at AIU Online.

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