Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Company A has an expected perpetual EBITDA thats grows at 3%, return on unlevered equity is 4.56%, 25% debt to equity ratio and will keep

Company A has an expected perpetual EBITDA thats grows at 3%, return on unlevered equity is 4.56%, 25% debt to equity ratio and will keep constant. The debt value is 10,000,000, no taaxation and depreciation. The company EBIT is closed to ?

ans is 780,000

why is that?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials of Managerial Finance

Authors: Scott Besley, Eugene F. Brigham

14th edition

324422709, 324422702, 978-0324422702

More Books

Students also viewed these Finance questions

Question

1. Describe the Good Lives Model of offender rehabilitation

Answered: 1 week ago

Question

Question 1 Consider a normal distribut a) Find the z-score for x=2

Answered: 1 week ago

Question

Name the four objectives of transfer prices. pg26

Answered: 1 week ago

Question

What is the ideal transfer price for cost centers? pg36

Answered: 1 week ago

Question

How is the synthetic market price calculated? pg36

Answered: 1 week ago