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Megas produces giros and stuffed grape leaves. It has the following capital structure. Its debt is $ 6 0 m and its equity is $
Megas produces giros and stuffed grape leaves. It has the following capital structure. Its debt is $m and its equity is $M Its risk free rate is while the expected return of the market is and its beta is Megas intends to invest $ m into a giro project wanting to become the biggest seller in the American continent. Thus, it expects to receive $m EBIT annually for years on this investment. The depreciation is straight line for years based on the $m investment. For the grape leaves project, Megas will invest $ billion and receive $m annually, in terms of both operating profit after tax plus depreciation. Compute the value of Megas. with all formulas
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