What projected ebit is required to support valuation

Reference no: EM13235709

XYZ, Inc. is an unlevered firm. Its Cost of Equity (WACC) is 9.5%. The current market value of the firm has been estimated at $ 15,7 Million. Ignoring tax effects, what is XYZ's expected EBIT?
Suppose XYZ pays taxes at 35%. What projected EBIT is required to support valuation of $15.7 Million?

Reference no: EM13235709

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