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Anderson Aeronautics currently has a capital structure made entirely of equity with total invested capital of $ 1 2 million made up of 2 0
Anderson Aeronautics currently has a capital structure made entirely of equity with total invested capital of $ million made up of shares of common stock. They are considering issuing new debt to replace some of this equity. Anderson currently has a beta of and is considering replacing $ million in equity with new debt. Andersons current corporate tax rate is The interest rate rd on $ million of debt is The interest rate rd on $ million of debt is The interest rate rd on $ million of debt is The riskfree rate is and the return on the market is Anderson has an EBIT of $
A What will be Andersons new levered beta if it replaces $ million in equity with debt?
B What will be Andersons weighted average cost of capital WACC if it utilizes $ million in debt?
C What are Andersons earnings per share EPS if it utilizes $ million in debt?
For example, your discussion post should start out with a repost of the problem like this Please choose at least one different number than my example for your post:
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