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(a) The following forecasts are made for Oxyceuticals Skincare: EBIT (perpetual) Tax rate Debt WACC $84,000 21% $100,000 @8% 16% Determine the value of the
(a) The following forecasts are made for Oxyceuticals Skincare: EBIT (perpetual) Tax rate Debt WACC $84,000 21% $100,000 @8% 16% Determine the value of the firm according to M&M's Proposition I assuming taxes. Assess if it would be beneficial for the firm to continue increasing debt (assuming taxes)
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