Simithy Medical Disposal Is a New and Expanding Entry in the Bio-Waste/bio-Hazard

Multiple Choice

Simithy Medical Disposal is a new and expanding entry in the bio-waste/bio-hazard industrial sector. As of year-end it had $50 million in invested capital of which $40 million is long-term debt. Simithy Medical's 2 million shares trade for $45 each. The company has an EVA of $8.3 million and a cost of capital of capital of 12%. Assuming book value of debt equals market value, what is Simithy's Future Growth Value (FGV) ?

A) $10.8 million
B) $20.8 million
C) $69.2 million
D) $249.2 million
E) $350.1 million