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Firm A is a publicly traded company. It has 7.9 million shares outstanding and the current price of each share is $18.4. Firm A also
Firm A is a publicly traded company. It has 7.9 million shares outstanding and the current price of each share is $18.4. Firm A also has 100,000 annual coupon bonds. Half of these bonds have 5 years to maturity, a 5.8% coupon, a 7% YTM, and a face value of 1,000. The other half of these bonds have 7 years to maturity, a 6.3% coupon, an 8% YTM, and a face value of 1,000. Finally, you know that this company has $30 million in excess cash.
What is the Enterprise Value of this company?
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