Homework answers / question archive / Sales €500m Operating margin 10% Debt €200m Equity €300m Interest cost 5% Tax rate 20% Unlevered historic beta 0

Sales €500m Operating margin 10% Debt €200m Equity €300m Interest cost 5% Tax rate 20% Unlevered historic beta 0

Finance

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Sales €500m

Operating margin 10%

Debt €200m

Equity €300m

Interest cost 5%

Tax rate 20%

Unlevered historic beta 0.6

Depreciation charge of €20m

100m shares outstanding

Risk free rate = 2% market premium = 7%

 

 

What is company's EPS?

 

What is the share price? Assume company has a market cap of E400m

 

What is its PER?

 

Estimate cost of equity and WACC