6.2 Obtain the original APV of TPI Inc. using the data of Problem 2.7, and compare your...
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6.2 Obtain the original APV of TPI Inc. using the data of Problem 2.7, and compare your result to that obtained using WACC in the solution to Problem 2.7. Project interest expenses on the basis of the earnings before interest and taxes (EBIT) coverage ratio. For continuation value, use the enterprise value calculated with WACC for a 26% debt ratio. Unlever beta using Equation (3.17).
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Valuation Mergers Buyouts And Restructuring
ISBN: 9780470128893
2nd Edition
Authors: Enrique R. Arzac
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