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.)
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
Section: Chapter Questions
Problem 1PS
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Question
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 (
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