AnthroPort has a beta of 1.1 and its RWACC is 13.6 percent. The market risk premium is 7.2 percent and the risk-free rate is 2.3 percent. The firm's cash flow at Time 4 is $28,800 with a growth rate of 2.1 percent. What is the value of the firm at Time 4?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
Problem 6P
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AnthroPort has a beta of 1.1 and its RWACC is 13.6 percent. The market risk premium is 7.2 percent and the risk-free rate is 2.3 percent. The firm's cash flow at Time 4 is $28,800 with a growth rate of 2.1 percent. What is the value of the firm at Time 4?

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