Essay
Given the forecast below,estimate the fair market value of Kenmore Air at the end of 2012.Assume that after 2016,earnings before interest and tax will remain constant at $220 million,depreciation will equal capital expenditures in each year,and working capital will not change.Kenmore Air's weighted-average cost of capital is 11 percent and its tax rate is 40 percent.
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FMV = PV{FCF,2013-2016} + PV{Terminal v...View Answer
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Correct Answer:
Verified
FMV = PV{FCF,2013-2016} + PV{Terminal v...View Answer
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