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Mary has EAT, depreciation expense, capital expenses, debt and debt principal payments of $2m, $2.8m, $1.3m, $40m and $1.5m respectively. Moreover, Mary had operating profit of $2.5 million and its assets went from a total of $35 to $38 million. Additionally, the firm had equity of $20 million and debt of $18 million. Between the first and the second years, it has current assets of $11m and $13.4m and current debts of $5m and $6.1m respectively. Its unlevered bheta, D/E and t are 3, 40/60 and .4 respectively. Furthermore, The firm had a yield to maturity of 6%. The t bond rate is 2% and the risk premium is 8% and its sales are $90m. Mary plows about 30% of its profits back into its business. Derive the value of Mary.

Financial Management, Finance

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