What is the enterprise value of leapfrog after taking

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Question: LeapFrog is a business in the stock market, with an market value of 182M€ and a stock value of 14€. r_e/ROE = 9% and EPS = 1.26€ per stock. LeapFrog is not expected to grow in the future, thus net investments = 0 and change in NPV=0. So far, LeapFrog has funded itself, but they're planning on taking debt, which they will use to buy their own stocks and invalidate it. The debt to enterprise value ratio would be 30%. r_d (related to debt) = 3.1%.

What is the enterprise value of LeapFrog after taking the debt?

What is the value of LeapFrogs own belongings after the change?

What is LeapFrogs net income after the change?

What is r_e/ROE percent after the change?

Reference no: EM133432384

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