You are responsible for valuing qxr corporation given the


You are responsible for valuing QXR Corporation, given the following data: current EPS = $4.00; current payout ratio = 40%, ROA = 20%; beta = 1.2; debt/equity ratio = 0.75; interest rate on debt = 12%; annualized 6-month T-bill rate = 8%; number of shares outstanding = 100,000. You expect the firm to grow at 8% after the first five year, with the ROA declining to 15%. You also know that QXR has substantial real estate holdings that are currently unutilized and can be sold for $1,000,000. What is your estimate of QXR's intrinsic value? Assume a market rate of return of 15%.

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Financial Management: You are responsible for valuing qxr corporation given the
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