What is the market-cap of this firm

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Reference no: EM132028624

 A very small public firm has $538M in assets and $218M in debt. Investors require a return of 12% and a 20% payout ratio. Net income was just reported at $40M with $0.80 EPS.

(a) What’s the growth rate for this firm?

(b) How many shares are outstanding?

(c) What is the price per share (hint: use the Gordon model), &

(d) What is the market-cap of this firm?

% Growth rate: _____ # Shares outstanding: _____ Price per share: _____ Market capitalization: _ _ ___

Reference no: EM132028624

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