Growth Current stock price(yahoo)$36.59  1 thru 55+ Revenues20,000,0000.220%5% Earnings b4 interest & taxes2,000,000    debt outstanding10,000,000    Pretax interest Expense1,000,000    Equity Book Value10,000,000    Average beta1.3    Avg debt equity

profilegivijraoobe2004
   Growth 
Current stock price(yahoo)$36.59  1 thru 55+ 
Revenues20,000,0000.220%5% 
Earnings b4 interest & taxes2,000,000    
debt outstanding10,000,000    
Pretax interest Expense1,000,000    
Equity Book Value10,000,000    
Average beta1.3    
Avg debt equity ratio0.2    
Equity market value30,000,000    
Tax Rate40%    
Capital Expenditures1,000,000    
depreciation charge 2x     
Treasure bond risk free rate7%    
Net income$1,033,334 25%8% 

2016 market rate of return

I have figured cost of equit and capital.  Can't figure out:

C. Estimate the value of the owner's stake in this private firm, using both the firm approach and the equity approach?
  

8.87%

 

 

 

 

 

 

 

 

  
    • 10 years ago
    • 5
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