Question
Use the following data and find the market price per share (MPS) if tax and working capital are 25% 15% of EBIT respectively. Furthermore, value
Use the following data and find the market price per share (MPS) if tax and working capital are 25% 15% of EBIT respectively. Furthermore, value of debt (vd) = $15,000, cost of debt (kd) = 8%, number of shares outstanding = 1,500, market risk (B) = 1.75, Risk Free rate (Rf) = 7%, Market Return (Rm) = 18% and Debt to Equity ratio (D/E) = 35:65.
| Years | EBIT | DEP | Cap. Exp. |
| 2016 | 7500 | 700 | 700 |
| 2017 | 7100 | 900 | 600 |
| 2018 | 8500 | 500 | 500 |
| 2019 | 6500 | 600 | 900 |
| 2020 | 6000 | 500 | 400 |
| 2021 | 5500 | 750 | 300 |
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Mission Ready Finances Proven Principles To Guide Your Story To Financial Freedom
Authors: Marco Parzych
1st Edition
173321531X, 978-1733215312
