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consider a firm with EBIT = 500 , TC= 25% RU=12.5% SUPPOSE DEBT GOES FROM 0 TO 250$. AT 9 PER CENT . USING M&M

consider a firm with EBIT = 500 , TC= 25% RU=12.5% SUPPOSE DEBT GOES FROM 0 TO 250$. AT 9 PER CENT . USING M&M PROPOSTION 1 WITH TAXES, WHAT IS THE VALUE OF THE :

A) LEVERED FIRM

B) UNLEVERED FIRM

C) THE VALUE OF EQUTIY

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