Question
2. 20 marks COMP TARGET D $ 5,000 $ 800 P 10,000 ?? V $15,000 $ ?? Rate (r) 6% 6% Tax 25% 25% EBIT
2. 20 marks COMP TARGET D $ 5,000 $ 800 P 10,000 ?? V $15,000 $ ??
Rate (r) 6% 6% Tax 25% 25% EBIT $2000 $400 Int (300) (48) EBT 1,700 352 Tax (425) (88) NI $1,275 $264 (i) Use PEu to value the levered equity (P) of the TARGET company (ii) Complete the table below: Note PEu is also called unlevered PE ratio COMP TARGET PE ratio ?? ?? Unlevered PE ratio ?? ??
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Fundamentals Of Financial Management Concise
Authors: Eugene F. Brigham, Joel F. Houston
11th Edition
0357517717, 9780357517710
