Question
Following information for the Sillery Manufacturing are available: Expected EBIT of $166,667, corporate tax rate of 35%, debt of $450,000 at an interest rateof 8%,
Following information for the Sillery Manufacturing are available:
Expected EBIT of $166,667, corporate tax rate of 35%, debt of $450,000 at an interest rateof 8%, unlevered cost of capital 18%.
i) What is the value of Sillery's equity?
ii) What is the cost of equity capital for Sillery?
iii) What is the WACC?
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Intermediate Financial Management
Authors: Brigham, Daves
10th Edition
978-1439051764, 1111783659, 9780324594690, 1439051763, 9781111783655, 324594690, 978-1111021573
