Question:Julie Smith, an analyst with ABC Company, has collected the following data about the firm:EBITDA = $3.5 millionTax rate = 38%Debt outstanding = $2.5 millionCost of debt = 10.5%Cost of common equity = 14%Shares of stock outstanding = 800,000BV of the stock per share = $12The firm’s product market is considered stable, and the firm expects no growth, and all earnings are paid out as dividends. Assuming depreciation & amortization costs of $500,000 per year, calculate the firm’s net income and EPS.
Question:Julie Smith, an analyst with ABC Company, has collected the following data about the firm:EBITDA = $3.5 millionTax rate = 38%Debt outstanding = $2.5 millionCost of debt = 10.5%Cost of common equity = 14%Shares of stock outstanding = 800,000BV of the stock per share = $12The firm’s product market is considered stable, and the firm expects no growth, and all earnings are paid out as dividends. Assuming depreciation & amortization costs of $500,000 per year, calculate the firm’s net income and EPS.
Question:Julie Smith, an analyst with ABC Company, has collected the following data about the firm:EBITDA = $3.5 millionTax rate = 38%Debt outstanding = $2.5 millionCost of debt = 10.5%Cost of common equity = 14%Shares of stock outstanding = 800,000BV of the stock per share = $12The firm’s product market is considered stable, and the firm expects no growth, and all earnings are paid out as dividends. Assuming depreciation & amortization costs of $500,000 per year, calculate the firm’s net income and EPS.
Question:Julie Smith, an analyst with ABC Company, has collected the following data about the firm:EBITDA = $3.5 millionTax rate = 38%Debt outstanding = $2.5 millionCost of debt = 10.5%Cost of common equity = 14%Shares of stock outstanding = 800,000BV of the stock per share = $12The firm’s product market is considered stable, and the firm expects no growth, and all earnings are paid out as dividends. Assuming depreciation & amortization costs of $500,000 per year, calculate the firm’s net income and EPS.
