1. You are considering moving some of your operations to a state/country that you estimate would reduce your overall tax rate 0.075 (750 basis points). Using 5-way DuPont ratios, what would be the ROE after the changes are made?

Net Income 1.686

Pretax profit 2.309

EBIT 2.851

Total Sales 47.52

Avg Assets 39.6

Avg Equity 33"

2. You are considering moving some of your operations to a state/country that you estimate would reduce your overall tax rate 8% (800 basis points).
Using 5-way DuPont ratios, what would be the ROE after the changes are made?
Net Income	9.243		Total Sales	166.600
Pretax profit	12.662		Avg Assets	98.000
EBIT	16.66		Avg Equity	70.000

Before the changes are made the firm was intrinsically valued at $75.01. After the changes, what would the new value be assuming
the new ROE, growth, and EPS1. The firm pays dividends as 65% of EPS. The discount rate is 13%.