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Business, 20.04.2020 20:26 jholland03

Bon Temps' financial statements show the following information: Average cost of funds 10.0 %, EBIT $ 500,000, Total capital $1,250,000, EPS $2.00, Shares outstanding 150,000, Marginal tax rate 30.0%.

(1) Compute the company's economic value added (EVA).
(2) Suppose that normally Bon Temps' P/E ratio is 20. Using the information given, estimate the market price per share for Bon Temps' common stock.

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