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Problem 1 o points possible (ungraded) Magic Machines Inc. (MM), a mature Industrial company, expects an earning of $93.80 million next year (year 1) from its existing assets, which Will continue perpetually. MM has no growth opportunities and will payout all its earnings. There are no corporate taxes. The cost of capital for MM's assets is 8.67%. The risk-free interest rate is 5.13% (for all maturities), Sa Submit (m) 0.0/1.0 point (graded) Under MM's new capital structure, with both debt and equity, consider year 1. (m) What is the value of debt after interest and dividend payments? million dollars (n) 0.0/1.0 point (graded) (n) What is the value of equity after interest and dividend payments? million dollars Submit You have used 0 of 2 attempts (0) 0.0/1.0 point (graded) (o) What is MM's debt-to-equity ratio in year 1 after these payments? Problem 1 o points possible (ungraded) Magic Machines Inc. (MM), a mature Industrial company, expects an earning of $93.80 million next year (year 1) from its existing assets, which Will continue perpetually. MM has no growth opportunities and will payout all its earnings. There are no corporate taxes. The cost of capital for MM's assets is 8.67%. The risk-free interest rate is 5.13% (for all maturities), Sa Submit (m) 0.0/1.0 point (graded) Under MM's new capital structure, with both debt and equity, consider year 1. (m) What is the value of debt after interest and dividend payments? million dollars (n) 0.0/1.0 point (graded) (n) What is the value of equity after interest and dividend payments? million dollars Submit You have used 0 of 2 attempts (0) 0.0/1.0 point (graded) (o) What is MM's debt-to-equity ratio in year 1 after these payments