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Aggregate Market Value

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A company has a capital of $200 million. Expects a return on investment of 9%, forecast a steady growth of 5% and a weighted average cost of capital of 10%. What is the value of its operations? And what is their aggregated market value?

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Solution Summary

In this solution we calculate the aggregate market value based on the given variables.

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Value of operations= Current year cash flow*(1+growth rate)/(WACC-growth rate)
Current year cash flow= Net Income= ...

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