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Wood Corp. uses no debt. The weighted average cost of capital is 17 percent. If the current market value of the equity is $36 million
Wood Corp. uses no debt. The weighted average cost of capital is 17 percent. If the current market value of the equity is $36 million and there are no taxes. EBIT is $ Note: this is a PV of perpetuity calculation. The value of the equity (i.e. the firm) is the present value of all future equal annual EBIT payments in perpetuity, using the WACC as the discount rate. Solve the present value of perpetuity formula for the EBIT. (Do not include the dollar sign (\$). Input your answer in dollars, not in millions. (e.9.,1,500,000, not 1.5))
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