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Capital Structure Analysis The Rivoli Carnpany has no debt outstanding, and its financial position is given by the following data: a. What is Rivoli's intrinsic

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Capital Structure Analysis The Rivoli Carnpany has no debt outstanding, and its financial position is given by the following data: a. What is Rivoli's intrinsic value of operations (Ley, its unlevered value)? Round your answer to the nearest dollar. 5 What is its intrinsic stock price? Its earnings per share? Round your answers to the neorest cent. Intrinsic stock price: 5 Earnings per chare: 5 b. Fivoli is considering selling bonds and simultaneously repurchasing some of its stock. If it moves to a copital structure with 40% debt based on market values, its ca of equity, fh, will increase to 11%,o reflect the increased risk, Bonds can be sold at a cost, r4 of 7%. Based on the new capital structure, what is the new weighted averae cost of captal? Rround your answer to three decimal places. What is the fevered value of the firm? What is the amount of debt? Do not cound intermediate caicuiations. Round your ansivers to the nearest dollar. Levered value of the furm: 3 Debty 5 C. Bosed on the new capital structure, what is the new stock price? Do not round intermediste caiculationt. Round your answee to the neareat cent: 5 What is the remainng number of shares? Do not round intermediate caiculatipos. Round your an wer to the ozarest whole number. whates. Whet is the new eainungs per skare? De not round intermed ate calculations. Round your answer to the nearest cent 5

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