Question
You are considering moving some of your operations to a state/country that you estimate would reduce your overall tax rate 0.077 (770 basis points)
You are considering moving some of your operations to a state/country that you estimate would reduce your overall tax rate 0.077 (770 basis points) Tax burden 0.77 Interest burden 0.85 Operating margin 0.1 Asset turnover 1.5 Leverage ratio 1.6 Equity 68 Before the changes are made the firm was intrinsically valued at 71.14 After the changes, what would the new value be assuming the new ROE, growth, and EPS1. The firm pays dividends as 0.39 of EPS. The discount rate is 0.16"
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Auditing An International Approach
Authors: Wally J. Smieliauskas, Kathryn Bewley
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