Answered step by step
Verified Expert Solution
Question
1 Approved Answer
(15 points question total) BiteDance Inc. has a weighted-average cost of capital (WACC) equal to 15% and is subject to a 20% corporate income tax
(15 points question total) BiteDance Inc. has a weighted-average cost of capital (WACC) equal to 15% and is subject to a 20% corporate income tax rate. The company has a return on capital (ROC) equal to 10%, an after-tax operating margin of 40% and has a capital reinvestment rate of 50%. Based on the previous information please answer the following questions: EV (a) (3 points) What is BiteDance Inc.'s forward ratio equal to? In case the equation EBIT does not show on your screen here is a text version of the same ratio: EV/EBIT1. EV (b) (3 points) What is BiteDance Inc.'s forward ratio equal to? In case the EBIT (1-TC) equation does not show on your screen here is a text version of the same ratio: EV/EBIT1(1-Tc). EV (c) (3 points) What is BiteDance Inc.'s forward ratio equal to? In case the equation does not show on your screen here is a text version of the same ratio: EV/FCFF1. EV (d) (3 points) What is Bite Dance Inc.'s ratio equal to? In case the equation does not show Sales on your screen here is a text version of the same ratio: EV/Sales. (e) (3 points) What is BiteDance Inc.'s ( Capital ratio equal to? In case the equation does not show on your screen here is a text version of the same ratio: EV/Capital
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started