13 2 Burg 's 6 million shares are now worth only 6 million X $4 $24 million The debt is selling for 80 of book, or $20 million The market value balance sheet is WACC ( 4514 ) ( 55x20 ) 17 3 Note that this question ignores taxes Assets Liabilities and Shareholders' Equity Assets $44 Debt $20 (45 ) E...

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13.2 Burg's 6 million shares are now worth only 6 million X $4 = $24 million. The...

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13.2 Burg's 6 million shares are now worth only 6 million X $4 = $24 million. The debt is selling for 80% of book, or $20 million. The market value balance sheet is:

image text in transcribed WACC=(.4514%)+(.55x20% )=17.3% Note that this question ignores taxes.

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Fundamentals Of Corporate Finance

ISBN: 9780073382302

6th Edition

Authors: Richard A Brealey, Stewart C Myers, Alan J Marcus

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Question Posted: Jul 31, 2024 11:00 AM

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13.2 Burg's 6 million shares are now worth only 6 million X $4 = $24 million. The...

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Assets Liabilities and Shareholders' Equity Assets $44 Debt $20 (45%) Equity 24 (55%) Value $44 Value $44

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Fundamentals Of Corporate Finance

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