QUESTION 19 The Green Co. earned $35 million before interest and taxes on revenues of...
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QUESTION 19 The Green Co. earned $35 million before interest and taxes on revenues of $95 million last year. Capital expenditures were $15 million, and depreciation was $15 million. The additions to working capital were $6 million. The firm's weighted average cost of capital is 12.45%, the marginal tax rate is 40%, and the expected cash flow growth is 5%. The market value of debt is $25 million. The value of the firm's equity is closest to: O A $186.41 million B. $73.70 million C. $115.93 million D. $85.12 million
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