Larsen & Toubro Ltd (www.larsentoubro.com) is an Indian multinational conglomerate listed on the Bombay Stock Exchange. In the financial year 2011, the company’s net income was 4,456 crore, EPS was 73.56 crore, and the dividend payout ratio was 23.7 per cent. The return on equity of the firm was 17.83 per cent and its debt to equity ratio is 1.31. The appropriate discount rate for L&T is 18 per cent. What is the value of the firm’s equity? What is L&T’s share price? What is the value of the firm’s bonds? What is the value of the firm?