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QUESTION
Bon Temps' financial statements show the following information : Average cost of funds 11.0 % EBIT $ 600, 000 Total capital $1 , 350 , 000...
I understand for the most part question 4 but I am struggling with question 5.
4 . Bon Temps' financial statements show the following information :"Average cost of funds11.0 %EBIT$ 600, 000Total capital$1 , 350 , 000EP:$2.50Shares outstanding150, 000Marginal tax rate40. 0%( 1 ) Compute the company's economic value added ( EVA );( 2) Interpret the value you computed in part 1 ( 1 ) .5 .\Suppose that normally Bon Temps' P/E ratio is 18x . Using the information given in part ( 1 ) , estimate*the market price per share for Bon Temps' common stock .