Question
1.A company has a cost of equity of 10.6%.In 2018 its ROE was 14.7% and the company expects this to remain constant over the next
1.A company has a cost of equity of 10.6%.In 2018 its ROE was 14.7% and the company expects this to remain constant over the next 13 years,at which point its parents will expire,and its ROE will decline towards its cost of equity with a persistence factor of 0.1.Its expected book value 13 years from now is $ 521.What is the terminal value of the residual income from 2031,as at 2031( you do not need to calculate the present value of the terminal value).
a 23.53 b 29.80 c 31.66 d 26.90
2.A company has an operating profit or EBIT of $ 793000 in 2019 and paid interest totaling $ 56000.Its tax rate is 35%.What is its Net Operating Profit After Tax?
a 535000 b 479000 c 467000 d 523000
3.2.A company has an operating profit or EBIT of $ 777000 in 2019 and paid interest totaling $ 54000.Its tax rate is 40%.What is its Net Operating Profit After Tax?
a 423000 b 434000 c 499000 d 488000
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