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Tawhiri Equipment Companys adjusted total assets are valued as $125 Million. The total debt value...

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Finance

Tawhiri Equipment Companys adjusted total assets are valued as $125 Million. The total debt value of the company is $25 million. Net income recorded in the previous year is $5 million. Interest rate earned on fixed income securities is 8%. Due to high risk nature of the company, the figure 1.5 is used to adjust for risk. The risk free interest rate is 3% per year. With Anglo-Saxon method, calculate the equity value of this company.

a. $ 155.2 mil

b. $ 128.9 mil

c. $ 116.7 mil

d. $ 105.4 mil

e. $ 95 mil

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