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  3. a company expects capital expenditures and depreci

A company expects capital expenditures and depreciation to continue to offset each other and for...

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Finance

A company expects capital expenditures and depreciation to continue to offset each other and for both net income and increases in working capital to grow at 6.32% per year. The firm cost of capital is 16.85%. If the firm was able to reduce its annual increase in working capital by 31.05%, what would be the effect on the firm's value? The firm Free Cash Flow and Working Capital for the year was 1.54M and 25.13M respectively.

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