assassin42
assassin42
23.02.2021 • 
Business

9. McKenzie, Inc. is expected to report operating income (EBIT) of $8.5 million for next year. Depreciation expense will be $5 million and capital expenditures will come to $2 million. Free cash flow is expected to grow at a rate of 2.5% for the foreseeable future. McKenzie faces a 40% tax rate and has $20 million in debt outstanding. McKenzie has a cost of capital of 12% and 10 million shares of common stock outstanding. The current value of a share of McKenzie stock is .

Solved
Show answers

Ask an AI advisor a question