B. COMPREHENSIVE PROBLEM: 80 POINTS The following are selected financial information on Firm A and Firm B. You are asked to complete the table by methodically calculating the missing information (question numerated in lines 14 to 23). You will assume that Cost of Goods Sold (COGS) is 60% of Sales and that the company uses a marginal tax rate of 30% in addition to the other assumptions that are provided below. Upload your spreadsheet when submitted the exam. Alternatively, email me the spreadsheet via the blackboard course shell. 35,000 B 35,000 60% 14 $ 15% Revenue COGS Gross Profit Operating Expenses EBIT Interest Expense EBT Income Tax @ 30% Net Income 35,000 (5,250) 29,750 35,000 (5,250) 29,750 15 16 17 30% 18 Earnings per share 18 Earnings per share $ $ 19 Dividend $ $ 20 Expected Return on Equity 221 Estimated Share Price $ $ $ $ 22 23 Market value of Equity Market Value of Debt Enterprise Value $ Outstanding Debt Shares Outstanding Cost of Debt Beta Expected return on Market Dividend pay-out ratio Dividend growth Risk free Common Equity (Balance Sheet) Company's debt trading @ 5,000 2,000 6% 1.50 9.0% 65% 3.0% 1.5% 1,200 115 10,000 500 9% 2.30 9.0% 65% 3.0% 1.5% 1,200 110 $