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 companys 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

A)

What ROC (return on capital) is Storsj expected to make in perpetuity?

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%).

Klar Question 3 QUESTION You have to been asked to look at some data of the Swedish company Stoesjo 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 Sper share -Debt (book value as well as market value) 25 Million - EBITI 20 Million stable growth in perpetuity -No cash balance Cost of Capital What HOC (cum on capital) Storsj expected to make in perpetuity Estimate the value per share in the firm. Given the Storsj is changing its debt to capital ratio to 40% With the change, cost of capital as well as How will be 87. (Assume that the table growth rate is unchanged at 1%) A B