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Business, 23.02.2021 01:40 heartprague

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 .

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9. McKenzie, Inc. is expected to report operating income (EBIT) of $8.5 million for next year. Depre...
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