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 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


Answer: D

Business

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Henderson Manufacturing Inc Henderson Manufacturing Inc manufactures electric scooters. The company currently makes all of the electronic components for the scooter itself. When 10,000 motors are manufactured each year, the motor costs per unit are as follows: Direct materials $5 Direct labor 5 Variable overhead 2 Fixed overhead 7 Plymouth Inc has offered to sell Henderson 10,000 motors for $14

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What is the division of a market into similar groups of customers?

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