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Author Question: Tarbox Tobacco Inc. is all equity financed and generates perpetual annual EBIT of $300. Assume that ... (Read 60 times)

RYAN BANYAN

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on: Apr 25, 2021
Tarbox Tobacco Inc. is all equity financed and generates perpetual annual EBIT of $300. Assume that the EBIT, and all other cash flows, occur at year end and that we are currently at the beginning of a year. Assume that Tarbox has a 100% payout rate. Tarbox has 1,500 shares outstanding. The stock holders of Tarbox require a return of 5%. Assume that the tax rate is 0%. What is the price per share for Tarbox stock?
◦ $6.67
◦ $0.20
◦ $4.00
◦ $10.00
◦ $7.49
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by RYAN BANYAN on Apr 25, 2021

leeeep

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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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RYAN BANYAN

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Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it

laurnthompson

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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