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The following is a four-year forecast for Torino Marine. a. Estimate the fair market value...

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Accounting

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The following is a four-year forecast for Torino Marine. a. Estimate the fair market value of Torino Marine at the end of 2021. Assume that after 2025, earnings before interest and tax wilI remain constant at $200 million, depreciation will equal capital expenditures in each year, and working capital will not change. Torino Marine's weighted-average cost of capital is 12 percent and its tax rate is 40 percent. Note: Do not round intermediate calculations. Enter your answer in millions rounded to 1 decimal place. b. Estimate the fair market value per share of Torino Marine's equity at the end of 2021 if the company has 44 million shares outstanding and the market value of its interest-bearing llabilities on the valuation date equals $340 million. Note: Do not round intermediate calculations. Round your answer to 2 decimal places

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