Cobali Industries had sales of 158,700 units at a price of   $10,91   per unit. It faced fixed operating costs of   $2.54,000   and variable operating costs of   $5.35   per unit. The company is subject lo a tax rate of   38%   ond has a weighted average cost of capial of   8.8%   . Calculate Cobalr's net operating profis affor taxes (NOPAT), and use it to estimale the value of the firm. (Assume the frm's earrings are not growing.) Cobairs NOPAT is 5 (Round to the nearest dolat) The value of the firm is 1 (Round to the nearnst dolar.)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Cobali Industries had sales of 158,700 units at a price of

 

$10,91

 

per unit. It faced fixed operating costs of

 

$2.54,000

 

and variable operating costs of

 

$5.35

 

per unit. The company is subject lo a tax rate of

 

38%

 

ond has a weighted average cost of capial of

 

8.8%

 

. Calculate Cobalr's net operating profis affor taxes (NOPAT), and use it to estimale the value of the firm. (Assume the frm's earrings are not growing.) Cobairs NOPAT is 5 (Round to the nearest dolat) The value of the firm is 1 (Round to the nearnst dolar.)

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