Your company reported the following information: Sales => $97,000,000 Cost of Goods Sold = 65% of...

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Your company reported the following information: Sales => $97,000,000 Cost of Goods Sold = 65% of Sales Operating Expenses Interest expense = = 5% of Sales $123,000 Operating capital = $10 million, originally raised as follows: $5 million as Common Stock, and remaining capital as Debt Current WACC = 11.18% Number of Shares of Common Stock = 1,000,000 shares Earnings per share Tax rate = 23% Depreciation = $6.76 = $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. Your company reported the following information: Sales => $97,000,000 Cost of Goods Sold = 65% of Sales Operating Expenses Interest expense = = 5% of Sales $123,000 Operating capital = $10 million, originally raised as follows: $5 million as Common Stock, and remaining capital as Debt Current WACC = 11.18% Number of Shares of Common Stock = 1,000,000 shares Earnings per share Tax rate = 23% Depreciation = $6.76 = $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.