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James Corporation has compiled the following information on its financing costs:
Type of Financing Book Value ($) Market Value ($) Cost (%)
Long term debt 5,000,000 2,000,000 ...

Well this is my attempts from this question
EPS = Net earning / outstanding shares
= (3 - 1.5) / 1
= 1.5

Price per share = EPS / Discount rate - growth
= 1.5 / (.15 - .05)
= $15

Is this...

Well this is my attempts from this question
EPS = Net earning / outstanding shares
= (3 - 1.5) / 1
= 1.5

Price per share = EPS / Discount rate - growth
=...

immediate outlay = $15 million
year 1 another outlay of $5 million
year 2 net cash inflow = $6 million
the net cash level will be perpetuity

this question is continue from the first question

discount rate = 15%
gross revenues last year = $3 million
total costs =$1.5 million
gross revenue and costs expected to grow @ 5% per year

can any one help to solve that question