The same industry as the walton company

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Reference no: EM131999965

The Alcindor Company is similar to and is in the same industry as the Walton company. Both Alcindor Company and Walton Company have a cost of equity of 12%, cost of debt of 8%, and 30% debt. If Walton company has revenues (R) of $1000, operating margin(m) of 15%, a tax rate (T) of 40% investment rate (I) of 8%, growth rate (g) of 18% and 5 years of supernormal growth (n) and Zero growth thereafter, what value should Alcindor Company be willing to pay Walton company?

Reference no: EM131999965

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