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Author Question: Schultz Security Inc. is an all equity firm. At the end of the current year, the CFO expects EBIT to ... (Read 22 times)

TVarnum

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on: Apr 25, 2021
Schultz Security Inc. is an all equity firm. At the end of the current year, the CFO expects EBIT to be $6M, and the same earnings are expected annually in perpetuity. The company is not growing, so CAPEX and investments in net working capital are zero. Schultz's shareholders require a return of 12%. Schultz has 10 million shares outstanding. The corporate tax rate is 40%. What is the market value of Schultz's shares?
◦ $0.72
◦ $2.0
◦ $3.0
◦ $4.0
◦ $5.0
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Marked as best answer by TVarnum on Apr 25, 2021

SeanoH09

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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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TVarnum

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Reply 2 on: Apr 25, 2021
Excellent

bitingbit

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

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