Aristako company Ltd has earnings before Interest and taxes of GHȻ10 million. This includes depreciation and amortizatio

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answerhappygod
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Aristako company Ltd has earnings before Interest and taxes of GHȻ10 million. This includes depreciation and amortizatio

Post by answerhappygod »

Aristako company Ltd has earnings before Interest and taxes of
GHȻ10 million. This includes depreciation and amortization charges
of GHȻ500,000. The company requires GHȻ2 million to invest in
capital expenditure and GHȻ1 million to invest in working capital.
Assume income tax rate of 25% and weighted cost of capital of 15%,
using the free cash flow valuation method, calculate the value of
the company
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