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Leiter & Company reported EBIT of $60 million for last year add has a tax rate of 25%.
Depreciation expense totaled $30 million and capital spending came to $20 million. Free cash flow
is expected to grow at a rate of 5% for the foreseeable future. The required return for Leiter &
Company is 14.00%. What is the current total value of Leiter & Company (in milions)? A. $641.67
B. $919.46 C. $1,025.95 D. $883.33 E. $728.75

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Leiter amp Company reported EBIT of 60 million for last y.pdf

  • 1. Leiter & Company reported EBIT of $60 million for last year add has a tax rate of 25%. Depreciation expense totaled $30 million and capital spending came to $20 million. Free cash flow is expected to grow at a rate of 5% for the foreseeable future. The required return for Leiter & Company is 14.00%. What is the current total value of Leiter & Company (in milions)? A. $641.67 B. $919.46 C. $1,025.95 D. $883.33 E. $728.75