Question
Summary Income Statement in $ Sales 5,000,000 EBIT 1,000,000 Int. Expense 40,000 EBT 960,000 Net Income 624,000 Other Financial Information in $ Market Value of
Summary Income Statement in $
Sales 5,000,000
EBIT 1,000,000
Int. Expense 40,000
EBT 960,000
Net Income 624,000
Other Financial Information in $
Market Value of LT Debt 500,000
Market Value of Equity 4,500,000
Avg. P/E 12x
Growth rate “g” = 0.04
13.Calculate required rate of return “r”
14.Calculate intrinsic value. [Assume or substitute Net Income for Cash Flow].
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13 Growth Rate 004 or 4 Growth Rate ROE Retention Ratio 4 Net Income Market Value of Equity ...
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
9th Edition
1337614689, 1337614688, 9781337668262, 978-1337614689
