Question: EROIC and MVA of Constant Growth Firm
A company has capital of $300 million. It has an EROIC of 12%, forecasted constant growth of 7%, and a WACC of 11%. What is its value of operations? What is its MVA? (Hint: Use Equation below.)
Round your answers to the nearest dollar. Enter your answers in dollars. For example, enter $12 million as $12000000.