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2 months ago
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 thevalue of the firm, given that it has a cost of capital of 11%?

▸ an increase of $0.78 million

▸ an increase of $12,500

▸ an increase of $2.08 million

▸ a decrease of $2.22 million
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Fundamentals of Corporate Finance


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2 months ago
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an increase of $2.08 million
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