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BR Inc. right now has an outstanding worth of debt of $15million, it has a coupon rate and yield 12%/year, maturing in 7 years. There
BR Inc. right now has an outstanding worth of debt of $15million, it has a coupon rate and yield 12%/year, maturing in 7 years. There wont be any new debt issued in the future. The tax rate is 35% and interest is annualy paid. Please calculate the Value of debt and the value of ITS at year 0.
BR's non-ITS assests portfolio has current value of $600 million and OCC of 15%. Please calculate the return of equity, value of equity, WACC, and unlevered CCC at year 0.
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