Bob's Farm Rental and Party Supply posted an EBIT of $45,000 and has no investments in working capital or assets.Shareholders are requiring a return of 22%.Calculate the value of the company.Assume a tax rate of 15%.
A) $204,545
B) $173,864
C) $300,000
D) $234,000
E) $217,865
Correct Answer:
Verified
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