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We want to compute the price of Pabon. It has 2 m shares outstanding and $80 of book value of equity. Pabon expects to sell
We want to compute the price of Pabon. It has 2 m shares outstanding and $80 of book value of equity. Pabon expects to sell $20m worth of sales and have EAT of $5m and keep 40% of its profit. Furthermore, it has $100m of assets. Its short term assets grew by $13 million and short term liabilities by $4 million. Moreover, it has depreciation charges of 5% of its assets. Its coe is .12 and its bheta is 1.2. Calculate Pabons value.
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