Tawhiri Equipment Companys adjusted total assets are valued as $125 Million. The total debt value...
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Tawhiri Equipment Companys adjusted total assets are valued as $125 Million. The total debt value of the company is $25 million. Net income recorded in the previous year is $5 million. Interest rate earned on fixed income securities is 8%. Due to high risk nature of the company, the figure 1.5 is used to adjust for risk. The risk free interest rate is 3% per year. With Anglo-Saxon method, calculate the equity value of this company.
a. $ 155.2 mil
b. $ 128.9 mil
c. $ 116.7 mil
d. $ 105.4 mil
e. $ 95 mil
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