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6. Mayo plc is financed by 31 million shares of equity with a market capitalisation of 74.4 million, and debt with a face value and
6. Mayo plc is financed by 31 million shares of equity with a market capitalisation of 74.4 million, and debt with a face value and market value of 30 million. The interest rate on the debt is 7.5% and debt interest is tax deductible. The firm's most recent earnings before interest and tax is 16.25 million. The corporate tax rate is 21%. There are no market imperfections apart from corporate tax. a) What are Mayo's current earnings per share, share price, and cost of equity (return on equity)
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