What is the company worth today

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Reference no: EM131527425

Sparkling Water, Inc., expects to sell 2.88 million bottles of drinking water each year in perpetuity. This year each bottle will sell for $1.65 in real terms and will cost $.98 in real terms. Sales income and costs occur at year-end. Revenues will rise at a real rate of 5 percent annually, while real costs will rise at a real rate of 4 percent annually. The real discount rate is 10 percent. The corporate tax rate is 39 percent.

What is the company worth today.

Reference no: EM131527425

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