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Consider the following information about Sigma Foods, a publicly traded company: The company has EBIT of $224,941 per year in perpetuity. The company has debt
Consider the following information about Sigma Foods, a publicly traded company: The company has EBIT of $224,941 per year in perpetuity. The company has debt outstanding of $309,783 yielding 8.4%. The equity beta of the company is 1.1. A 10 year T bond is yielding 3.7%. The equity market is expected to outperform the T bond yield by 7.3% on average. The corporate tax rate is 21.5%. What is the equity value of Sigma Foods? (Round your answer to the nearest whole number).
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