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Firm F generates permanent EBIT of 1Mns, leverage of 1, rS = 10%, and rB = 3%. The corporate tax rate is 30%. What is
Firm F generates permanent EBIT of 1Mns, leverage of 1, rS = 10%, and rB = 3%. The corporate tax rate is 30%. What is the value of firm F (debt + equity)?
a) 11.57 Mns
b) 12.57 Mns
c) 13.57 Mns
d) 14.57 Mns
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