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500,000 is the expected EBIT for Maame Yaa Pricila Owusu's (MYPO) incorporation, an unlevered firm. The firm has 10 percent as the required return on
500,000 is the expected EBIT for Maame Yaa Pricila Owusu's (MYPO) incorporation, an unlevered firm. The firm has 10 percent as the required return on its assets with outstanding company's shares of 250,000. The company is planning to raise a debt value of t1 million at 6 percent cost and the proceeds will be used to repurchase outstanding shares. Considering the leverage for MYPO what would be MYPO's gain when corporate, the dividend personal interest income and interest income personal income rate of taxes are 34%, 15% and 40% respectively? Select one: O a. 465,000 O b. 442,000 c. 24,000 Od. 673,000 500,000 is the expected EBIT for Maame Yaa Pricila Owusu's (MYPO) incorporation, an unlevered firm. The firm has 10 percent as the required return on its assets with outstanding company's shares of 250,000. The company is planning to raise a debt value of t1 million at 6 percent cost and the proceeds will be used to repurchase outstanding shares. Considering the leverage for MYPO what would be MYPO's gain when corporate, the dividend personal interest income and interest income personal income rate of taxes are 34%, 15% and 40% respectively? Select one: O a. 465,000 O b. 442,000 c. 24,000 Od. 673,000
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