Jericho Paper Distributors Has a Stable Share of a Saturated

question 32

Multiple Choice

Jericho Paper Distributors has a stable share of a saturated regional market. If the company's EVA is expected to continue at $7.2 million indefinitely, its capital invested is $3.1 million, and its cost of capital is 8%, what is the total business value?

• A) $144.2 million
• B) $93.1 million
• C) $41.5 million
• D) $10.3 million
• E) $9.8 million

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