Your company reported the following information: Sales $76,000,000 . Cost of Goods Sold 69% of Sales Operating Expenses = 7% of Sales Interest expense $70,000 Operating capital = $10 million, originally raised as follows: $7.8 million as Common Stock, and remaining capital as Debt Current WACC = 8.18% Number of Shares of Common Stock = 1,000,000 shares Earnings per share $11.20 Tax rate 39% Depreciation $0 per year H Additional investments in assets needed after Year O De . - O D 1 U . O - = - E $0 Based on this information, you should now be able to determine the economic value added (EVA). Now make the following assumptions: (1) this EVA will occur every year forever (a perpetuity), (2) the book value of debt is a good proxy for the market value of debt, and (3) the intrinsic price per share accurately reflects the current market price of the firm's stock. (Hint: it is a function of what the investors originally paid plus value that has been added.) Determine the current P/E ratio for this

Your company reported the following information: - Sales =$76,000,000 - Cost of Goods Sold =69% of Sales - Operating Expenses =7% of Sales - Interest expense =$70,000 - Operating capital =$10 million, originally raised as follows: - $7.8 million as Common Stock, and remaining capital as Debt - Current WACC =8.18% - Number of Shares of Common Stock =1,000,000 shares - Earnings per share =$11.20 - Tax rate =39% - Depreciation =$0 per year - Additional investments in assets needed after Year 0=$0 Based on this information, you should now be able to determine the economic value added (EVA). Now make the following assumptions: (1) this EVA will occur every year forever (a perpetuity), (2) the book value of debt is a good proxy for the market value of debt, and (3) the intrinsic price per share accurately reflects the current market price of the firm's stock. (Hint: it is a function of what the investors originally paid plus value that has been added.) Determine the current P/E ratio for this stock