Question
BiteDance Inc. has a weighted-average cost of capital (WACC) equal to 15% and is subject to a 20% corporate income tax rate. The company has
BiteDance Inc. has a weighted-average cost of capital (WACC) equal to 15% and is subject to a 20% corporate income tax rate. The company has a return on capital (ROC) equal to 10%, an after-tax operating margin of 40% and has a capital reinvestment rate of 50%. Based on the previous information please answer the following questions:
(a) What is BiteDance Inc.'s forward(EV/EBIT1)ratio equal to?
(b) What is BiteDance Inc.'s forward(EV/EBIT1(1TC))ratio equal to?
(c) What is BiteDance Inc.'s forward(EV/FCFF1)ratio equal to?
(d) What is BiteDance Inc.'s(EV/Sales)ratio equal to?
(e) What is BiteDance Inc.'s(EV/Capital)ratio equal to?
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Small Business Management Launching and Growing New Ventures
Authors: Justin Longenecker, Leo Donlevy, Terri Champion, William Petty, Leslie Palich, Frank Hoy
6th Canadian edition
176532218, 978-0176532215
