You have been provided with the following information, expressed in $ millions, on two firms for the last financial year ...

The operations of the two firms are similar, the corporate tax rate is 20% and you have been asked to use the PE approach to value X Corp.

Y Corp currently has 100 million shares on issue with a current price $30.00 per share What is the current equity value of X Corp?

Firm X Corp Y Corp Earnings after tax 500.0 Interest income 50.0 Interest expense Cash (at end of year) Debt (at end of year)