Reference no: EM132658997
Consider the following financial data.
US 10-Year T-Bond Yield = .63%
Market Risk Premium = 6.25%
Tax Rate = 21%
Also the following data for Salesforce, Inc. :
Stock Price = $249.21
Market Cap = $226.78 billion
Beta = 1.24
Moodys = A- (111 basis points)
Total Debt = $6.19 billion
Number of Shares Outstanding = 910 million
EPS = $2.59
Return on Assets = .93%
Total Debt/Equity = 16.10
Current Ratio = 1.14
Book Value/share = $42.33
Revenues =$19.38 billion
Price/Earning Multiple = 96.22
Problem 1: Using the Salesforce, Inc. financial profile information (refer to question above), what is the Market Value Added (MVA) for Salesforce?
[A] $226.78B
[B] $188.26B
[C] $232.97B
[D] $173.48B
[E] $312.97B