a company has capital of 200 million it has an EROIC of 9 fo

a company has capital of $200 million. it has an EROIC of 9%, forecast constant growth of 5%, and a WACC of 10%. what is value of operations? what is its intrinsic MVA?

Vop = $200,000,000 + ($200,000,000 ÷ (0.10 – 0.05)) * (0.09 – 0.10) Vop = $200,000,000 - $40,000,000 Vop = $160,000,000 MVA = $160,000,000 - $200,000,000 = ($40,000,000)