Find out the value of sales

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Question - Three corporations Aashman Shumaila Fahim are identical and each has total assets of 100 million Ashman is 100% equity finance Shumaila has 0% interest bring debts and Fahim is equity is equal to value of assets. Tax rate is 25% on earning if the economics environment is goods all three firm shows operating income 100 under average and poor economics environments operating income will be 50 and 25 million respectively.

Required -

Find out the interest rate when discount rate is 15%

Find out the value of financial charges of all three companies

Find out the value of sales if all three companies operating income is 10% of cost of goods sold, cost of goods sold is equal to gross profit in all economics environments

Price stock sells for $275 per share and you own 300 shares.

What is the current market value of your investment?

What is the new price per share, new amount of shares you will own, and the new market value of your investment If the firm declares a 15% stock dividend?

Reference no: EM132954578

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