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ALSET Corporation, an electric vehicle manufacturer, reported EBITDA of $ 1 , 2 9 0 million in 2 0 2 0 , prior to interest
ALSET Corporation, an electric vehicle manufacturer, reported EBITDA of $ million in prior to interest expenses of $ million and depreciation charges of $ million. Capital Expenditures in amounted to $ million, and working capital was of revenues. Revenues in were $ million. The firm had $ billion of debt outstanding in book value terms, trading at a market value of $ billion and yielding a pretax interest rate of ALSET had million shares outstanding, that were trading at $ per share, and with a beta ie levered beta of ALSETs tax rate is The treasury bond rate is Assume that the market risk premium is
ALSET expects revenues, earnings, capital expenditures, and depreciation to grow at a year from to after which time the growth rate is expected to drop to during this steady state period in perpetuity. During this steady state, CAPEX will offset depreciation. The company also plans to lower its DebtEquity ratio to during he steady state, resulting in the pretax interest rate on its debt dropping to
Given the above information on ALSET,
A Calculate the value of the firm ALSETs enterprise value
B Calculate ALSETs equity value.
C Calculate ALSETs value per share.
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