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3. Storsj Viltmat AB You have to been asked to look at some data of the Swedish company Storsj Viltmat AB and to answer some

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3. Storsj Viltmat AB You have to been asked to look at some data of the Swedish company Storsj Viltmat AB and to answer some questions of the company's status. The data you have received are: manufactures food from the wilderness publicly traded. 15 Million shares outstanding SEK 5/share SEK 25 Million in debt (book value as well as market value) SEK 20 Million in EBIT(1-t) stable growth of 3% in perpetuity No cash balance 9% in cost of capital Bilagor fr denna frga: Question 3.xlsx 9% in cost of capital Bilagor fr denna frga: Question 3.xlsx a. What ROC (return on capital) is Storsj expected to make in perpetuity? Skriv ditt svar hr: Historik Antal ord: 0 BI U ARE Antal ord: 0 b. Estimate the value per share in the firm. Given that Storsj is changing its debt to capital ratio to 40%. With the change, cost of capital as well as ROC will be 8%. (Assume that the stable growth rate is unchanged at 3%). Skriv ditt svar hr: Historik Antal ord: 0 BI U ARE Antal ord: 0 Klar Question 3 QUESTION 3 You have to been asked to look at some data of the Swedish company Storsj Viltmat AB and to answer some questions of the company's status, The data you have received are: - manufactures food from the wilderness - publicly traded shares outstanding 15 Million - share price 5 per share - Debt (book value as well as market value) 25 Million - EBIT(1.6) 20 Million stable growth in perpetuity 3% - No cash balance Cost of Capital 99% What ROC (retum on capital) is Storsj expected to make in perpetuity? Estimate the value per share in the firm Given that Storsj is changing its debt to capital ratio to 40%. With the change, cost of capital as well as ROC will be 8%. (Assume that the stable growth rate is unchanged at 3%) A

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