单项选择题
A company has annual after-tax cash flows of $2million per year which are expected to continue in perpetuity. The company has a cost of equity of 10%, a before-tax cost of debt of 5% and an after-tax weighted average cost of capital of 8%per year. Corporation tax is 20%.
What is the theoretical value of the company?
A.$40m
B. $20m
C.$50m
D.$25m