The Indy Company experiences the following annual incomes over the last five years: $60,000, $70,000, $110,000, $150,000, $160,000. A firm like Indy Company commands a 13% discount rate and has a long term growth rate of 3% considering the capitalization of earnings method. Using a non-weighted earnings model, what is the approximate value of the firm (rounded)?

The Indy Company experiences the following annual incomes over the last five years: $60,000, $70,000, $110,000, $150,000, $160,000. A firm like Indy Company commands a 13% discount rate and has a long term growth rate of 3% considering the capitalization of earnings method. Using a non-weighted earnings model, what is the approximate value of the firm (rounded)?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 13P

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