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  3. the following are selected financial information o

The following are selected Financial information on Firm A and Firm B. You are been...

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Finance

The following are selected Financial information on Firm A and Firm B. You are been asked to complete the table by methodically calculating the missing information.

You will assume that Cost of Goods Sold (COGS) is 65% of Sales and that the company uses a marginal tax rate of 35%

Assume Cost of Depreciation is Zero

FIRM A FIRM B

Revenue $ 3,000 $ 3,000

COGS 1,950 1,950

Gross Profit 1,050 1,050

Operating Expenses (300) (300)

EBIT 750 750

Interest Expense $ 0 $ 24

EBT 750.769 726.154

Income Tax @35% 262,769 254.154

Net Income $ 488 $ 472

Earnings per share - -

Dividend per share - -

Expected Return on Equity - -

Estimated Share Price - -

Market value of Equity - -

Market value of Debt - -

Enterprise Value $ 2,181 $ 2,503

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