Need some help. On page 104 he says "In this case, that would put the intrinsic value of a share at $21.35 and of the company at $333 million". How did he come up with this IV?
Book Value = $55 mil
Repro. Cost = $180 mil, and assuming 8% Cost of Cap
EPV = $274 mil
So where did $333 mil come from? If this is EPV, then where did he get 6.6% Cost of Cap. rate?
Thanks in advance.