Ch 3 Homework 2

Nopat ebit x 1tax rate 4b x 60 24b costs 7000000

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Unformatted text preview:  + 200 +,,000] = $650,,000 EBT $750,000  ­ Taxes 40% $300,000 Note the Net CF & Operating CF are = when there is no debt. Net Income $450,000 3 ­9 MVA = (Shares outstanding x market price)  ­ (Shares outstanding x book value) $130M = Shares x $60  ­ $500M Note that shares outstanding x book value = $ $630M = Shares x $60 common shareholder equit y Shares = $630M/$60M = 10,500,000 shares 3 ­10 Sales $14,000,000 a. NOPAT = EBIT x (1 ­tax rate) = $4B x .60 = $2.4B  ­ Costs $7,000,000 b. Net CF =...
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This note was uploaded on 10/23/2013 for the course BUS 320N taught by Professor Wang during the Fall '13 term at Marist.

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