BiteDance Inc. has a weighted-average cost of capital (WACC) equal to 15% and is subject to...

 

Transcribed Image Text:

BiteDance Inc. has a weighted-average cost of capital (WACC) equal to 15% and is subject to a 20% corporate income tax rate. The company has a return on capital (ROC) equal to 10%, an after-tax operating margin of 40% and has a capital reinvestment rate of 50%. Based on the previous information please answer the following questions: EV EBIT, (a) (3 points) What is BiteDance Inc.'s forward ratio equal to? In case the equation does not show on your screen here is a text version of the same ratio: EV/EBIT1. EV (b) (3 points) What is BiteDance Inc.'s forward ratio equal to? In case the EBIT,(1-Tc) equation does not show on your screen here is a text version of the same ratio: EV/EBIT:(1-Tc). :) EV (c) (3 points) VWhat is BiteDance Inc.'s forward ratio equal to? In case the equation FCFF, does not show on your screen here is a text version of the same ratio: EV/FCFF1. EV (d) (3 points) What is BiteDance Inc.'s ratio equal to? In case the equation does not show Sales on your screen here is a text version of the same ratio: EV/Sales. EV (e) (3 points) What is BiteDance Inc.'s ratio equal to? In case the equation does not Capital show on your screen here is a text version of the same ratio: EV/Capital. BiteDance Inc. has a weighted-average cost of capital (WACC) equal to 15% and is subject to a 20% corporate income tax rate. The company has a return on capital (ROC) equal to 10%, an after-tax operating margin of 40% and has a capital reinvestment rate of 50%. Based on the previous information please answer the following questions: EV EBIT, (a) (3 points) What is BiteDance Inc.'s forward ratio equal to? In case the equation does not show on your screen here is a text version of the same ratio: EV/EBIT1. EV (b) (3 points) What is BiteDance Inc.'s forward ratio equal to? In case the EBIT,(1-Tc) equation does not show on your screen here is a text version of the same ratio: EV/EBIT:(1-Tc). :) EV (c) (3 points) VWhat is BiteDance Inc.'s forward ratio equal to? In case the equation FCFF, does not show on your screen here is a text version of the same ratio: EV/FCFF1. EV (d) (3 points) What is BiteDance Inc.'s ratio equal to? In case the equation does not show Sales on your screen here is a text version of the same ratio: EV/Sales. EV (e) (3 points) What is BiteDance Inc.'s ratio equal to? In case the equation does not Capital show on your screen here is a text version of the same ratio: EV/Capital.

Answer rating: 100% (QA)

WACC 15 Tax rate 20 ROC 10 Aftertax Operating Margin 40 Reinvestment rate 50 Growth rate Reinvestmen... View the full answer