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Please show ALL Workings VERY Clearly, Thank You! Eden Inc has recently published...

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Finance

Please show ALL Workings VERY Clearly, Thank You!

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Eden Inc has recently published its latest accounts showing profit after tax of $23.12m, after deducting interest of $4.89m. Tax allowable depreciation was $4.55m and the company expects profits to grow at 5% per annum indefinitely The company policy is to maintain its asset base by reinvesting cash to a value equal to the tax allowable depreciation. Eden has estimated its cost of equity at 12%, which is included in the company WACC of 10% Assuming that profit after tax is the equivalent to cash flows, what is the value of the equity capital? $346.80m S485.52m $588.21m S683.76m

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