While conducting a valuation study of Adco Corp

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While conducting a valuation study of Adco Corp. for a potential purchaser of the business, your firm determines that the Terminal Value of Adco at the end of a four-year Planning Period is $452,000. The firm's capital structure is 20% debt and 80% equity, the cost of debt is 5.2%, and the cost of equity is 9.1%. The firm has a 30% tax rate. If the Present Value of Planning Period Cash Flows is $252,300, the Enterprise Value for Cross is:

 

1. $72,100                                   
2. $148,407
3. $332,135 
4. $583,435 
5. None of the above