Finding weighted average cost of capital, Operation Management

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Finding weighted average cost of capital

Assignment:

You are given the following forecasted information for the year 2010: Sales = $300,000,000; Operating profitability (OP) = 6%; Capital requirements (CR) = 43%; Growth (g) = 5%; and the weighted average cost of capital (WACC) = 9.8%. If these values remain constant, what is the horizon value (that is, the 2010 value of operations)?

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Operation Management: Finding weighted average cost of capital

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