solved: Extra Value Inc is expected to generate EBIT of 20

## solved: Extra Value Inc is expected to generate EBIT of 20

solved: Extra Value Inc is expected to generate EBIT of 20 Extra Value Inc. is expected to generate EBIT of \$20 million next year, with anticipated depreciation and amortization of \$3 million. Extra Value has debt of \$40 million. Comparable firms are trading at average forward-looking EV/EBITDA ratios of five times. Based on the EV/EBITDA…

solved: Pepper Inc is expected to have before tax earnings of 2 5

## solved: Pepper Inc is expected to have before tax earnings of 2 5

solved: Pepper Inc is expected to have before tax earnings of 2 5 Pepper Inc. is expected to have before-tax earnings of \$2.5 million next year. The tax rate is 35 percent. There are 2 million common shares outstanding. Comparable firms in the same industry are estimated to have price-earnings multiples of 10 to 16.…

solved: Eeeva Inc has an EBIT of 1 5 million The tax

## solved: Eeeva Inc has an EBIT of 1 5 million The tax

solved: Eeeva Inc has an EBIT of 1 5 million The tax Eeeva Inc. has an EBIT of \$1.5 million. The tax rate is 35 percent. Eeeva has a debt of \$2.5 million and common equity of \$5 million. Eeeva’s cost of capital is estimated to be 11 percent. Calculate Eeeva’s EVA. solved: Eeeva Inc…

solved: Relever Inc has a debt to equity D E ratio of 0 3 its

## solved: Relever Inc has a debt to equity D E ratio of 0 3 its

solved: Relever Inc has a debt to equity D E ratio of 0 3 its Relever Inc. has a debt-to-equity (D/E) ratio of 0.3; its target D/E is 1.6. Relever currently has an estimated beta of 1.1. Relever’s estimated tax rate is 35 percent. What is the estimate of Relever’s beta at its target D/E? …

solved: 1 Free Cash Inc is anticipated to make earnings before

## solved: 1 Free Cash Inc is anticipated to make earnings before

solved: 1 Free Cash Inc is anticipated to make earnings before 1. Free Cash Inc. is anticipated to make earnings before interest and taxes (EBIT) of \$30,000, \$40,000, and \$50,000 in each of the next three years. Depreciation is estimated to be \$3,000, \$3,500, and \$4,000 in each of the next three years. Capital expenditures…

solved: Bigco Inc is considering acquiring Smallco Inc a publically traded

## solved: Bigco Inc is considering acquiring Smallco Inc a publically traded

solved: Bigco Inc is considering acquiring Smallco Inc a publically traded Bigco Inc. is considering acquiring Smallco Inc., a publically traded firm in the same industry. Smallco is currently trading at \$12 per share and has 20 million shares; it is believed to be trading at its fair value. Bigco feels that the present value…

solved: Eeeva has 1 million shares outstanding and its current share

## solved: Eeeva has 1 million shares outstanding and its current share

solved: Eeeva has 1 million shares outstanding and its current share Eeeva has 1 million shares outstanding and its current share price is trading at \$6. Its book value of debt is similar to its estimated market value of debt. Using this information and that provided in question #9, estimate Eeeva’s MVA. solved: Eeeva has…

solved: PrivCo Inc is a small private firm with a book

## solved: PrivCo Inc is a small private firm with a book

solved: PrivCo Inc is a small private firm with a book PrivCo Inc. is a small private firm with a book value of assets of \$550,000 and liabilities of \$250,000. Its assets include property listed at a cost of \$80,000 but with a recently assessed market value of \$125,000. In addition, PrivCo has \$60,000 of…

solved: Now suppose BetLev wishes to have a target capital structure

## solved: Now suppose BetLev wishes to have a target capital structure

solved: Now suppose BetLev wishes to have a target capital structure Now suppose BetLev wishes to have a target capital structure of 50 percent debt and 50 percent equity. What will be its levered beta at the target capital structure? solved: Now suppose BetLev wishes to have a target capital structure

solved: Suppose BetLev Inc has a capital structure with 65 percent

## solved: Suppose BetLev Inc has a capital structure with 65 percent

solved: Suppose BetLev Inc has a capital structure with 65 percent Suppose BetLev Inc. has a capital structure with 65 percent debt and 35 percent equity, a (levered) beta of 1.3, and a corporate tax rate of 35 percent. Estimate the unlevered beta of BetLev. solved: Suppose BetLev Inc has a capital structure with 65…