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fast please. are they in eqilibrium ? QUESTION 35 The following information is used for questions 35 - 38. You are presented with information concerning

fast please. are they in eqilibrium ?
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QUESTION 35 The following information is used for questions 35 - 38. You are presented with information concerning two companies. Both have the same degree of business risk. Company is financed entirely with common stock while company Lis financed with $200,000 of perpetual debt that has a coupon interest rate of 7.59 and a yield to maturity of 7.5% (it is price at it's face value). The expected net operating income of both companies is $75,000 a year forever. Company has a cost of equity of 10%, while Company Lhas a cost of equity 129. Assume there are no taxes in this world. For each company, calculate the (1) value of their equity and (2) the total market value of the company, (show the values of the debt stock, total company for each) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 [Mac). TT T Arial 3(12pt) E Ps Company : Click Save and QUESTION 35 The following information is used for questions 35 - 38. You are presented with information concerning two companies. Both have the same degree of business risk. Company is financed entirely with common stock while company Lis financed with $200,000 of perpetual debt that has a coupon interest rate of 7.59 and a yield to maturity of 7.5% (it is price at it's face value). The expected net operating income of both companies is $75,000 a year forever. Company has a cost of equity of 10%, while Company Lhas a cost of equity 129. Assume there are no taxes in this world. For each company, calculate the (1) value of their equity and (2) the total market value of the company, (show the values of the debt stock, total company for each) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 [Mac). TT T Arial 3(12pt) E Ps Company : Click Save and

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