Bo Katan ltd will generate pre-tax earnings of $9.4 million per year in perpetuity and assume the unlevered cost of capital is 6.8%. In addition, Bo Katan Ltd has $57 million in permanent debt outstanding. The firm will pay interest only on this debt. Bo Katan Ltd.’s effective tax rate is expected to be 20.0% for the foreseeable future. A. What would be the value of Bo Katan Ltd if it were all-equity financed? (1 mark) The value of Shining light Ltd is $million. (Round to 2 decimal places) B. Suppose Bo Katan Ltd pays interest of 6.0% per year on its debt. What is its annual interest tax shield? (1mark) The annual tax shield is $ ???million. (Round to 2 decimal places.) C. What is the present value of the interest tax shield, assuming its risk is the same as the loan? (1 mark) The present value of the interest tax shield is $???million. (Round to 2 decimal places.)

Toothy Ltd earns a pre tax amount of $8.8 million per year. Their unlevered cost of capital is 8.7%. Toothy also has $62 million in debt. The tax rate is 30.%. a.What is the valuation of Toothy Ltd if it was only funded by equity capital?b.What is the interest tax shield if the debt incurs an interest rate of 9% per annum?

A firm has an operating profit of $120 million, pays interest of $20 million, and pays corporate tax at 30%. All cash flows will grow by 3% per year in perpetuity. The firm’s equity beta is 1.0, the market risk premium is 6% and the risk-free rate is 5%. What is the value of equity assuming no reinvestment needs and no depreciation?A.$909 millionB.$875 millionC.$1,250 millionD.$636 million

The Bega Barley Corp currently has a firm value of $3.75 million. If the company issues $1.1 million worth of debt at a yield to maturity of 4.45% p.a. compounding semi-annually, and uses it to repurchase equity, what will be Bega Barley Corp’s value after the restructure? Assume the corporate tax rate is 30%.

Suppose you borrow $120000 when financing a coffee shop which is valued at $175000. Assume that the unlevered cost of capital for the coffee shop is 7.5% and that the cost of debt is valued at 9%. What should be the cost of equity of your firm? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05"

YOLO Ltd has $9.16 million of debt in its current capital structure at an annual interest rate of 6.96% and 1.7 million ordinary shares on issue with a market value of $15.24 million. The firm’s tax rate is 30%. If EBIT is expected to be $6.31 million calculate the firm’s earnings per share (report your answer to two decimal places)?