ABC Corp, a transportation company, is projected to have EBIT of $12,000 and depreciation of $4,000 in year 1 (one year

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ABC Corp, a transportation company, is projected to have EBIT of
$12,000 and depreciation of $4,000 in year 1 (one year from today).
The company's debt has a market and face value of $40,000, with an
annual coupon rate of 5.5%. The company will maintain 625 common
shares outstanding over the next year. Compute an appropriate
forward-looking P/E multiple based on firms in the same industry as
ABC using information from the table below. Use the priceearnings
method to determine the value of equity and price-per-share of ABC.
The tax rate is 21%.