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Capital Structure Analysis The Rivoli Company 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 Company has no debt outstanding, and its financial position is given by the following data: a. What is Rivoli's intrinsic value of operations ( 1.e, 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 nearest cent. Intrinsic stock price: \$ Earnings per share: $ b. Rivoli is considering selling bonds and simultaneously repurchasing some of its stock. If it moves to a capital structure with 35% debt based on market values, its cost of equity, fs, will increase to 12% to reflect the increased risk. Bonds can be sold at a cost, rd, of 6%. Based on the new capetal structure, what is the new weinhted average cost of capital? Round your answer to three decimal places. Wh What is the ievered value of the firm? What is the amount of debt? Do not round intermediate calculations. Round your answers to the nearest dollar tevered value of the firms s Debitis c. Based on the new captal structure, what is the new stock price? Do not round intermediate calculations. Round your answer to the nearest cent. 5 What is the remaining number of shares? Do not round intermediate calculations. Pound your answer to the neares whole number. shates What is the new eaminos per share? Do not round intermedhate cakilations. Round your answer to the nearest cent. 5

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