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Bon Temps financial statements show the following information: Average cost of funds 11.0 % EBIT $ 600,000 Total capital $1,350,000 EPS $2.50 Shares outstanding 150,000
- Bon Temps financial statements show the following information:
Average cost of funds 11.0 %
EBIT $ 600,000
Total capital $1,350,000
EPS $2.50
Shares outstanding 150,000
Marginal tax rate 40.0%
- Suppose that normally Bon Temps P/E ratio is 18x. Using the information given in part (l), estimate the market price per share for Bon Temps common stock.
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