Big Tree Inn has an EBIT of $121,318, a decrease in net working capital of $1,204, interest expense of $5,200, net capital spending of $5,200, and a tax rate of 35 percent.The firm's WACC is 12.6 percent and its growth rate is 2.7 percent.What is the adjusted value of the firm?
A) $694,311.08
B) $708,007.49
C) $756,168.69
D) $733,333.33
E) $789,022.15
Correct Answer:
Verified
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