Question in december 2007 the company psi sa is financed, Ask an Expert

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Question: In December 2007 the company Psi SA is financed only with equity. Its shareholders require a return of 12%, the company presented EBIT equal 1.500€, 350€ of amortization and 500€ of corporate taxes. The company invested in fixed assets for 200€, and it's working capital increased in 50€. After a decade of rapid growth, the cash flows in the last two years increased only at a constant rate of 2%, and it is expected to remain at this level in the future. Determine the value of the firm on December 2007.

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