Cash-equivalent ebit, RosenBall, ASA expects a

Cash-equivalent ebit

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Reference no: EM131830057

RosenBall, ASA expects a cash-equivalent EBIT of 200 million without any growth in the foreseeable future. The firm’s overall cost of capital (the required rate of return on assets) is 10%, the applicable tax-rate is 25%, and there are 200 shares outstanding. RosenBall’s board of directors are currently looking into the possibility of refinancing the firm by borrowing 900 million at an interest rate of 5% per year. The loan is serviced by paying the annual interest, only. What is currently the all-equity value of RosenBall, ASA?

Reference no: EM131830057

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Cash-equivalent ebit : RosenBall, ASA expects a cash-equivalent EBIT of 200 million without any growth in foreseeable future. what is currently the all-equity value of RosenBall, ASA?

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