Question
Consider the following information about Green Industries, a publicly traded company: Green Industries has EBIT of $272,757 per year in perpetuity. The company has debt
Consider the following information about Green Industries, a publicly traded company:
Green Industries has EBIT of $272,757 per year in perpetuity. The company has debt outstanding of$251,257 which yields 6.5%. Unlevered firms in the same industry have a cost of equity capital of 11.3%. The corporate tax rate is 20.4%.
What is the equity value of Green Industries? (Round your answer to the nearest whole number).
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Entrepreneurial Finance Strategy, Valuation, And Deal Structure
Authors: Janet Smith, Richard Smith, Richard Bliss
1st Edition
0804770913, 9780804770910
