Question
Please slove on exel The company Meta has the following data: Sales 1,000 EBIT 100 Equity 100 Debt 0 The company Beta has the following
Please slove on exel
- The company Meta has the following data:
Sales 1,000
EBIT 100
Equity 100
Debt 0
The company Beta has the following data:
Sales 1,000
EBIT 100
Equity 100
Debt 0
But the company decides to increase leverage by paying a dividend of 50 at the beginning of the year.
The interest rate is 5%
Income tax rate is 25%
Both companies had 500 shares at the beginning of the year, with a face value of 0.1 per share.
At the end of the year, the market price for both companies is 750
Find Net Income
ROE
EPS
P/E ratio
For both companies and explain which one would be your choice if you were to invest in only one of them, explain in detail by using your calculations.
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