The Rivoli Company has no debt outstanding, and its financial position is given by the following data:
Expected EBIT | $700,000 | |
Growth rate in EBIT, gL | 0 | % |
Cost of equity, rs | 10 | % |
Shares outstanding, no | 200,000 | |
Tax rate, T (federal-plus-state) | 25 | % |
$
What is its intrinsic stock price? Its earnings per share? Round your answers to the nearest cent.
Intrinsic stock price: $
Earnings per share: $
%
What is the levered value of the firm? What is the amount of debt? Do not round intermediate calculations. Round your answers to the nearest dollar.
Levered value of the firm: $
Debt: $
$
What is the remaining number of shares? Do not round intermediate calculations. Round your answer to the nearest whole number.
shares
What is the new earnings per share? Do not round intermediate calculations. Round your answer to the nearest cent.
Get Answers For Free
Most questions answered within 1 hours.