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can someone help me with this? Wail Inc. currently has 130,000 shares of stock outstanding with a market price of $36 a share. Wail's next
can someone help me with this?
Wail Inc. currently has 130,000 shares of stock outstanding with a market price of $36 a share. Wail's next year's projected dividend is $4.5 and its estimated long-term growth rate is 5%. Its outstanding debt consists of 4,560 coupon bonds each with a face value of $1,000, maturity of five years, and an annual coupon rate of 9% with semi-annual payments. The bonds are traded at par. The tax rate is 40 percent. Suppose Wail wants to get rid of all its debt and become all-equity. What is the all-equity firm value? $4,560,000 $7,416,000 $4,680,000 $9,240,000 $11,064,000 Step by Step Solution
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