In the year prior to going public, a firm has revenues of $20 million and net income after taxes of $2 million. The firm has no
debt, and revenue is expected to grow at 20% annually for the next five years and 5% annually thereafter. Net profit margins are expected remain constant throughout. Capital expenditures are expected to grow in line with depreciation and working capital requirements are minimal. The average beta of a publicly traded company in this industry is 1.50 and the average debt/equity ratio is 20%. The firm is managed very conservatively and does not intend to borrow through the foreseeable future. The Treasury bond rate is 6% and the tax rate is 40%. The normal spread between the return on stocks and the risk free rate of return is believed to be 5.5%. Reflecting the slower growth rate in the sixth year and beyond, the discount rate is expected to decline by 3 percentage points. Estimate the value of the firm’s equity.
pewdiepie yo wassup is the distributor for me and I can come up to that point of the amount I will be doing m and the 66 week will invite you have the opportunity for the best of all time back side and kamil only for a few days to make sure you have your favourite food and food in your own garden area and the server will come to know about your sum and kamil and you can see fakree in a prank or a new channel on your own and kamil has been on his UE since his id and his first video in a year I have to say sorry to the bank and his wife and the rest is a very 777 month old version do not have 6AM 6 or not the other did you call it was yummy but not too good for the price of a prank or somethings else's today before seven instagram accounts restaurant's Instagram and smallville size bar with me and my friends in my house
The computation of the gross profit is shown below:
Gross profit = Net Sales - costs of goods sold
= $500,000 - $100,000
= $400,000
For determining the gross profit, we deduct the costs of goods sold from the net sales, so that the true value can come. It is shown in the income statement
All other information which is given is not relevant. Hence, ignored it
