Corx Inc. is a chemical manufacturing company whick reported earnings before interest and taxed of $150million this year.The firm has a cost of capital f 10%,a tax rate of 40% and expects earnings to grow 5% a year in perpetuity.You know that the firm has no working capital requirments but does have net capital expenditures that it needs to make to grow. The firm has return on invested capital of 12.5% that it expects to maintain in perpetuity.
The value of the firm is closest to:
a.$m1143
b.$m1134
c.$m1154
d.$m1167
不知应该用那种公式解答,求牛人相助!