Question
Jump Co had assets with a book value of $450 million, and an ROIC of 22%. The company's tax rate is 35% and the average
Jump Co had assets with a book value of $450 million, and an ROIC of 22%. The company's tax rate is 35% and the average annual depreciation is 3% of assets and new CAPX and change in NWC should be 5% of total assets on average. Interest charges are expected to be approx $15 million.
ROIC = $99 Millon
EBIT = $152.31 MIllion
EBITDA = $165.81 Million
WACC = expected 11.5%
PRojected Growth = 6%
What is the value of the firm Jump Co.?
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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
