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

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Definitions:

Collective Action

The collaborative effort of a group of people working towards a common goal or to address a shared concern or issue.

Human Rights Violations

Acts that infringe upon the basic rights and freedoms to which all humans are entitled, such as freedom from discrimination, right to life, and liberty.

Anti-Society Anarchists

Individuals who oppose organized society, advocating for a stateless society, often through a rejection of established laws and institutions.

Mass Society Theory

A sociological perspective that suggests modernization leads to the deterioration of traditional forms of social organization, resulting in a less cohesive society.