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I need help with finding out what the NPV is for this problem . It is in excel so it would look like NPV(rate, value
I need help with finding out what the NPV is for this problem . It is in excel so it would look like NPV(rate, value 1, value 2, etc.) I do not know what to put in for the value(s) .
Shares outstanding11,000,000
Share price$48.50
Purchase price$45,000,000
Increase in cash flow$10,000,000
Current cost of capital 10.50%
YTM on new debt 7.00%
Equity weight in new capital structure 70%
Tax rate 40%
The after tax earnings increase is 6,000,000
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