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Author Question: Universal Exports Inc. is an all equity firm. At the end of the current year, the CFO expects EBIT ... (Read 47 times)

jessicacav

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on: Apr 25, 2021
Universal Exports Inc. is an all equity firm. At the end of the current year, the CFO expects EBIT to be $500 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 Universal is 8%. Universal's prime competitor is a company called Spectre Corp. Spectre is identical to Universal Exports in every respect except that Spectre has $694.44 of long term debt outstanding. What is the value of Spectre Corp.? The corporate tax rate is 50%.
◦ $3,125
◦ $3,472
◦ $3,819
◦ $6,250
◦ $4,627
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Marked as best answer by jessicacav on Apr 25, 2021

emily12345

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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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jessicacav

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)

kishoreddi

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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