What is currently the all-equity value of rosenball asa


RosenBall, ASA expects a cash-equivalent EBIT of 200 without any growth in the foreseeable future. The firm’s overall cost of capital (the required rate of return on assets) is 10%, the applicable tax-rate is 25%, and there are 200 shares outstanding. RosenBall’s board of directors are currently looking into the possibility of refinancing the firm by borrowing 900 at an interest rate of 5% per year. The loan is serviced by paying the annual interest, only. What is currently the all-equity value of RosenBall, ASA? State your answer as a whole number without any decimal points.

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Financial Management: What is currently the all-equity value of rosenball asa
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