Tag Dabney Electronics currently has no debt. Its operating income is $20 million and its tax rate is 40 percent.

A consultant has collected the following information regarding Young Publishing: Total assets $3,000 million Tax rate 40% Operating income (EBIT) $800 million Debt ratio 0% Interest expense $0 million WACC 10% Net income $480 million M/B ratio 1.00× Share price…