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A company s annual EBIT is 6 0 0 euro and its return on assets equals 1 2 % . This company has 1 0

A companys annual EBIT is 600 euro and its return on assets equals 12%. This company has
100 shares outstanding and its market value of debt is 2000. The companys debt is
perpetual and the EBIT is expected to remain constant every year and perpetual. What is
the price per share of the firm?
a.6 euro
b.20 euro
c.30 euro
d. None of the above

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