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You are considering a new supplier that you estimate would reduce your costs 0.025 , increasing overall EBIT margin the same amount, or 250 basis

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You are considering a new supplier that you estimate would reduce your costs 0.025 , increasing overall EBIT margin the same amount, or 250 basis points. Tax burden 0.79 Interest burden 0.8 Operating margin 0.08 Asset turnover 2.1 Leverage ratio 1.2 Equity 56 Before the changes are made the firm was intrinsically valued at 45.54 After the changes, what would the new value be assuming the new ROE, growth, and EPS1. The firm pays dividends as 0.61 of EPS. The discount rate is 0.15 64.88 70.24 62.35 67.36 73.13

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