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Assume you are given the following information C D EBIT 100,000 100,000 4% DEBT INTEREST 0 12,000 Ke 7% 10% Determine the value of firm
- Assume you are given the following information
| C | D | |
| EBIT | 100,000 | 100,000 |
| 4% DEBT INTEREST | 0 | 12,000 |
| Ke | 7% | 10% |
- Determine the value of firm C and D (4 marks)
- Assume that an investor owns 20% in any of the firms, determine how the investor will practice the arbitrage process (5 marks)
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The Illiterate Executive An Executives Handbook For Mastering Financial Acumen
Authors: Blair Cook
1st Edition
1460289935, 978-1460289938
