Calculate pabons price if we assume that its growth rate is


Pabon has a P/E of 10 and a dividend of $2 per share. It has 2 m shares outstanding and $80 m of book value of equity, as well as $160 million of debt. Pabon expects to sell $20m worth of sales and have EAT of $5m and keep 40% of its profit. Furthermore, it has $240m of assets. Its tax rate is .3, and its unlevered bheta is 1. The 10 year t bond rate is 3% while the ROR in the S&P has been 13 %. Calculate Pabon’s price, if we assume that its growth rate is constant.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Calculate pabons price if we assume that its growth rate is
Reference No:- TGS02796182

Expected delivery within 24 Hours