Multiple Choice
Franklin Industries has a current net working capital of $1 million.It expects that this will grow at a rate of 3% annually forever.What growth rate in working capital would the firm require in order to achieve a $2 million increase in firm value,given that it has a cost of capital of 7%?
A) 2%
B) 2.7%
C) 3.3%
D) 1.4%
E) 4%
Correct Answer:
Verified
Correct Answer:
Verified
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