02

Your company reported the fnll Based on this information, you should now be able to determine the economic value added (EVA). Now make the following assumptions: (1) this EVA will occur every year forever (a perpetuity), (2) the book value of debt is a good proxy for the market value of debt, and (3) the intrinsic price per share accurately reflects the current market price of the firm's stock. (Hint: it is a function of what the investors originally paid plus value that has been added.) Determine what the new price per share will be. Answer in dollars and cents, rounded to the nearest cent, with no other punctuation. For example, if your answer is $20.567, enter "20.57