ABV Inc. has earning before interest and tax of $250 million, expected to grow 5% a year
Fantastic news! We've Found the answer you've been seeking!
Question:
ABV Inc. has earning before interest and tax of $250 million, expected to grow 5% a year forever; and tax rate is 40%. Its cost of capital is 10%, its reinvestment rate is 33.33%, and it has 200 million shares outstanding. If the firm has $500 million in cash and marketable securities and $750 million in debt outstanding, estimate the value of equity per share.
Related Book For
Financial Reporting and Analysis Using Financial Accounting Information
ISBN: 978-1439080603
12th Edition
Authors: Charles H Gibson
Posted Date: