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4 ) For each of the four plans, estimate the following for CPK: The present value of the tax deductions The levered firm value The
For each of the four plans, estimate the following for CPK:
The present value of the tax deductions
The levered firm value
The tax benefit per share based on the number of shares before the repurchase
The pershare repurchase price including the tax benefit
The number of shares that can be repurchased with the debt proceeds
Leverage ratios including the EBIT interest coverage
You can report your answers in a table, but make your assumptions and calculations explicit.
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