2010-02-23_052042_young

2010-02-23_052042_young - 7% Interest Expense $84.00 New...

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Young Publishing Total assets $4,000 million Tax rate Operating income (EBIT) $300 million Debt ratio Interest expense $0 million WACC Net income $180 million Market-to-Book R Share price $32.00 EPS = DPS g 0% New Capital Structure: Debt 40% Equity 60% Value of new Debt $1,200.00 Before Tax Cost of Debt
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Unformatted text preview: 7% Interest Expense $84.00 New Cost of Equity 11% 1) Number of Shares Outstanding: 56.25 million shares 2) Number of Shares after the Repurchase 18.75 million shares 3) New EPS after Repurchase $6.91 4) New Stock Price $62.84 40% 0% 10% 1 $3.20...
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This note was uploaded on 12/14/2010 for the course FIN 422 taught by Professor Sridharsundaram during the Fall '09 term at Grand Valley State University.

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2010-02-23_052042_young - 7% Interest Expense $84.00 New...

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