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10. A corporation with a debt ratio of 40% (book values) and a cost of debt of 10% is expecting anual EBITs of 40000 lei
10. A corporation with a debt ratio of 40% (book values) and a cost of debt of 10% is expecting anual EBITs of 40000 lei in perpetuity. The annual tax shield associated to debt financing is 1280 lei. Knowing that the corporate tax rate is 16%, compute the market value of the company, the cost of equity and the WACC. (1.25 pct)
Vcorp=.....................; Ke=.........................; WACC=......................
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