Question 3 Simin Co

Question 3 Simin Co. will have an EBIT of 3,496,789 EUR next year, the EBITDA will grow by 12.45% for the subsequent 2 years (until year 3). From then on, the EBITDA will grow perpetually at a 2.35% rate. The company has a perpetual risk-free debt of 13,500,000 EUR and the risk free rate is equal 3.75%. The company has assets that have a residual value of 15,000,000 that will be depreciated straight line in the next 3 years. Assuming that the depreciation tax shield has no systematic risk, that the corporate tax rate is 26% and that the unlevered equity return is 9.05%, the value of the depreciation tax shield is closest to A) 3,624,804 EUR B) 3,287,753 EUR C) 2,905,009 EUR D) 2,780,050 EUR E) I choose not to answer Question 4 Consider the information in Question 3. What is the value of Simin's equity? A) 91,513,109 Euro B) 95, 987,009 Euro C) 100,886,829 Euro D) 105.134.440 Euro E) I choose not to answer