Question
The Chief Financial Officer (CFO) of the ABC Company is interested to identify the cost of capital and value of the company. Currently, the ABC
The Chief Financial Officer (CFO) of the ABC Company is interested to identify the cost of capital and value of the company. Currently, the ABC is an all-equity company. Earnings before interest and taxes (EBIT) for the company is expected to be $86,015 forever, and the cost of capital is currently 15.39 percent. The corporate tax rate applicable to this company is 34.1 percent.
Calculate the market value of ABC.
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Personal Finance
Authors: E. Thomas Garman, Raymond Forgue
9th Edition
0618938737, 978-0618938735
