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Victoria Enterprises expects earnings before interest and taxes (EBIT) next year of $ 1.7 million. Its depreciation and capital expenditures will both be $ 313,000, and it expects its capital expenditures to always equal its depreciation. Its working capital will increase by $ 53,000 over the next year. Its tax rate is 40 %

If its WACC is 8 % and its FCFs are expected to increase at 3 % per year in perpetuity, what is its enterprise value?

(Please show breakdown of answer)

Financial Management, Finance

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