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1.Complete the following schedule. EBIT 450,000 Un-levered ke 9.4% Tax Rate 40% T-bill rate 4% TSX 10% Value of Debt 100,000 200,000 300,000 400,000 500,000
1.Complete the following schedule. EBIT 450,000 Un-levered ke 9.4% Tax Rate 40% T-bill rate 4% TSX 10% Value of Debt 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 Kb 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% Stock's Beta 0.90000 0.91209 0.92471 0.93789 0.95167 0.96609 0.98120 0.99705 1.01370 WACC % Value of Equity Value of Debt Value of Firm Kb Debt Kd Equity Ke WACC Assume a world of taxes, a cost for the risk of default., What is the value of this all equity firm and what is the WACC for the company if the tax rate is 40% and the company's beta is 0.90? Show your work! 1.Complete the following schedule. EBIT 450,000 Un-levered ke 9.4% Tax Rate 40% T-bill rate 4% TSX 10% Value of Debt 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 Kb 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% Stock's Beta 0.90000 0.91209 0.92471 0.93789 0.95167 0.96609 0.98120 0.99705 1.01370 WACC % Value of Equity Value of Debt Value of Firm Kb Debt Kd Equity Ke WACC Assume a world of taxes, a cost for the risk of default., What is the value of this all equity firm and what is the WACC for the company if the tax rate is 40% and the company's beta is 0.90? Show your work
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