Leni Inc. is an all-equity firm. At the end of the current year, the CFO expects EBIT to be $10M, and the same earnings are expected annually in perpetuity. The company is not growing, so CAPEX and investments in net working capital are zero. Leni's shareholders require a return of 8%. Leni has 20 million shares outstanding. The corporate tax rate is 30%. What is the market
Leni Inc. is an all-equity firm. At the end of the current year, the CFO expects EBIT to be $10M, and the same earnings are expected annually in perpetuity. The company is not growing, so CAPEX and investments in net working capital are zero. Leni's shareholders require a return of 8%. Leni has 20 million shares outstanding. The corporate tax rate is 30%. What is the market
Chapter15: Dividend Policy
Section: Chapter Questions
Problem 4P
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Leni Inc. is an all-equity firm. At the end of the current year, the CFO expects EBIT to be $10M, and the same earnings are expected annually in perpetuity. The company is not growing, so CAPEX and investments in net
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