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beta is 08 answer me fast please THANK YOU I am interested in purchasing the shares of a company that is being traded currently in
beta is 08
answer me fast please THANK YOU
I am interested in purchasing the shares of a company that is being traded currently in the market at PKR 51.50. From the following information of the company, you are required to advise me whether I should buy the shares of this company or not with appropriate reasoning. An appropriate Cash Based Method of valuation will be used to analyze the data. Year 0 Capital Expenditure 200 Net Working Capital 75 Depreciation Expense 200 EBIT 800 Additional Information: Tax rate = 20% Value of Debt = 10,000 No. of shares outstanding = 500 1 200 80 200 800 2 210 95 200 900 3 230 100 200 850 4 230 90 200 1000 5 240 110 200 1100 Debt to Equity Ratio = 30:70 Risk Free Rate = Last digit of your SAPID Market Rate = 20% Cost of Debt = Risk Free Rate I am interested in purchasing the shares of a company that is being traded currently in the market at PKR 51.50. From the following information of the company, you are required to advise me whether I should buy the shares of this company or not with appropriate reasoning. An appropriate Cash Based Method of valuation will be used to analyze the data. Year 0 Capital Expenditure 200 Net Working Capital 75 Depreciation Expense 200 EBIT 800 Additional Information: Tax rate = 20% Value of Debt = 10,000 No. of shares outstanding = 500 1 200 80 200 800 2 210 95 200 900 3 230 100 200 850 4 230 90 200 1000 5 240 110 200 1100 Debt to Equity Ratio = 30:70 Risk Free Rate = Last digit of your SAPID Market Rate = 20% Cost of Debt = Risk Free RateStep by Step Solution
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