Franklin Industries Has a Current Net Working Capital of $2

question 64

Multiple Choice

Franklin Industries has a current net working capital of $2.5 million.It expects that this will grow at a rate of 3.5% annually forever.If it could slow that growth to 3% per year,how would that affect the the value of the firm,given that it has a cost of capital of 11%?

• A)a decrease of $2.22 million
• B)an increase of $12,500
• C)an increase of $0.78 million
• D)an increase of $2.08 million

---

Definitions:

Multilateral Aid

Financial assistance provided by multiple governments or organizations to support economic development and welfare in developing countries.

Government Aid

Financial assistance or resources provided by the government to individuals, organizations, or other countries, often for relief, development, or economic support.

Political Self-Interests

Actions or policies pursued by politicians or political parties based on their own advantages or benefits rather than on public welfare.

Foreign Aid

Financial or other assistance provided by one country to another, especially for development projects or to help recover from a disaster.