Big Tree Inn Has an EBIT of $121,318, a Decrease

question 93

Multiple Choice

Big Tree Inn has an EBIT of $121,318, a decrease in net working capital of $1,204, interest expense of $5,200, net capital spending of $5,200, and a tax rate of 35 percent.The firm's WACC is 12.6 percent and its growth rate is 2.7 percent.What is the adjusted value of the firm?

• A)$694,311.08
• B)$708,007.49
• C)$756,168.69
• D)$733,333.33
• E)$789,022.15

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Definitions:

Land

The surface of the earth, extending downward to the center and upward indefinitely into the airspace, including natural resources and physical features.

Acceptable

Deemed satisfactory or permissible by a given standard or authority.

Acreage

The measurement of land area in acres, often used in real estate and land management.

Essential Terms

Key conditions and provisions in a contract that are fundamental to the agreement's objectives and enforceability.