Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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)
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. B $ A 35,000 $ 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 $ 19 Dividend $ $ 20 Expected Return on Equity 19 Dividend $ $ 20 Expected Return on Equity 21 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 @ 57p00 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 $ $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started