Question
1. ACME has EBIT of 100.This should continue forever.The tax rate is 40%.The cost of equity is 10%.Find the firm value and the WACC if
1. ACME has EBIT of 100.This should continue forever.The tax rate is 40%.The cost of equity is 10%.Find the firm value and the WACC if ACME uses 50 in 5% debt.
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
