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QUESTION 49 A divorcee engaged you for a valuation of the couple's joint business in...

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QUESTION 49 A divorcee engaged you for a valuation of the couple's joint business in which they are equal partners, and from which s/he now wants to quit the business. You value the entire business at $10,000,000. The business has external debt of $4,000,000, Operating Cash inflows of $3,000,000 and Operating Cash outflows of $1,000,000 for the most recent year. The Expected Growth Rate is 5%, Required Rate of Return is 25%, and all Risk Premia add up to 10%. What is the Capitalization Rate? 596 O 109 O 1595 O 20%

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