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Author Question: Discrete Discs Inc. manufactures hard disk drives for personal computers. Discrete is an all equity ... (Read 53 times)

ETearle

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on: Apr 25, 2021
Discrete Discs Inc. manufactures hard disk drives for personal computers. Discrete is an all equity firm. At the end of the current year, the CFO expects EBIT to be $10M and the same earnings are expected annually in perpetuity. The company is not growing so CAPEX and investments in net working capital are zero. The cost of equity for Discrete is 8%. Solid State Storage Inc. is identical to Discrete except that it has $3M of long term debt outstanding. What is the value of Solid State's equity? The corporate tax rate is 30%.
◦ $84.5M
◦ $85.4M
◦ $87.5M
◦ $88.4M
◦ $122.9M
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by ETearle on Apr 25, 2021

cloudre37

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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ETearle

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Reply 2 on: Apr 25, 2021
Excellent

bimper21

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Reply 3 on: Yesterday
:D TYSM

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