Question
The Record of TATA Industrial Company Showing the Following data:- Sales Volume in Units : 100 Million Units Selling Price per Unit : $ 3
The Record of TATA Industrial Company Showing the Following data:- Sales Volume in Units : 100 Million Units Selling Price per Unit : $ 3 Variable Cost per Unit : $ 0.90 Total Fixed Cost : $ 10,000,000 Risk Free Rate (RFR) : 12% Market Required Rate of Return : 20 % Beta : 1.2125 Long Term Debt : $ 50 Million @ Interest Rate 10% Number of Outstanding Shares : 10 Million Shares Share Price (Book Value) : $ 50 Tax Rate : 40% Payout Ratio : 50%
From the Above Mentioned Data, Find the Following:- 1. Sales Revenue in Dollars 2. Total cost COGS 3. Net income after Interest and tax (NI ) 4. Retune on Equity (ROE) 5. Required Rate of Return (RRR) 6. Dividend for Current Year (D0) 7. Calculate Growth Rate (g) 8. Dividend For Next Year (D1) 9. Find the Value of TATA Share 10. If Share is traded in the stock Market at $40, what is your decision as investor and why?
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Answer Given the information provided lets calculate the requested values 1 Sales Revenue in Dollars Sales Revenue Sales Volume in Units Selling Price ...Get Instant Access to Expert-Tailored Solutions
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