INCOME STATEMENT

million

Sales Revenue

$1,000\mathrm{.}0$

Cost of Sales

$800\mathrm{.}0)$

Gross Profit

$200\mathrm{.}0$

Selling, General and Administrative Expenses

$(100\mathrm{.}0)$

EBITDA

$100\mathrm{.}0$

Depreciation

$(50\mathrm{.}0)$

Interest Expense

$(7\mathrm{.}5)$

Pre$-$Tax Profit

$42\mathrm{.}5$

Tax

$(12\mathrm{.}8)$

Net Profit

$29\mathrm{.}8$

$$

BALANCE SHEET

million

ASSETS

Cash

$10\mathrm{.}0$

Accounts Receivable

$200\mathrm{.}0$

Inventory

$150\mathrm{.}0$

Property Plant and Equipment

$250\mathrm{.}0$

Total Assets

$610\mathrm{.}0$

LIABILITIES

Accounts Payable

$200\mathrm{.}0$

Bank Loan

$25\mathrm{.}0$

Corporate Bonds

$150\mathrm{.}0$

Total Liabilities

$375\mathrm{.}0$

SHAREHOLDERS' EQUITY

Ordinary Shares

$400\mathrm{.}0$

Retained Earnings

$(165\mathrm{.}0)$

Total Shareholders' Equity

$235\mathrm{.}0$

Total Liabilities and Shareholders' Equity

$610\mathrm{.}0$

$$

Notes

$1.$ The interest rate on the bank loan is $6\mathrm{.}00\%$ p$.$a$.$

$2.$ The corporate bonds have a credit rating of BB and have $5$ years to maturity. They make quarterly coupon payments at a coupon rate of $4\%$ p$.$a$.$

$3.$ The ordinary shares are shown on the balance sheet at their book value of $$1$ per share. They have a beta of $0\mathrm{.}51.$ In $2023,$ they paid a dividend of $$0\mathrm{.}03$ per share. The dividend is expected to grow at $5\%$ p$.$a$.$ for the next $3$ years, after which it will grow at a constant $3\%$ p$.$a$.$ in perpetuity.

Calculate the estimated market value of Rural Services Ltd$$s bank loans and corporate bonds. Show your answer formatted as dollar values