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Consider this information from Last Year (Y0) for (#5) through (#11): Sales 10,000,000 IBD 6,000,000 COGS 7,000,000 Book Equity 3,000,000 Overhead 1,800,000 Beta 1.2 Interest

Consider this information from Last Year (Y0) for (#5) through (#11):

Sales 10,000,000

IBD 6,000,000

COGS 7,000,000

Book Equity 3,000,000

Overhead 1,800,000

Beta 1.2

Interest Exp 300,000

ERP 7.8%

Tax (30%)

Risk free rate 4.0%

Number of common equity shares issued and outstanding: 100,000

No preferred stock, stock options, or warrants exist.

7. What is the value of Net Income for last year?

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