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hurry Question 4 FLAG QUESTION SESAME is an all-equity firm. Its camings before interest and tax (EBIT) is expected to be $10 million at and

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Question 4 FLAG QUESTION SESAME is an all-equity firm. Its camings before interest and tax (EBIT) is expected to be $10 million at and will grow at a rate of 29 per year. The cost of equity capital for this unlevered firm is 16). Assume a Modigliani and Miller world with corporate tax of 30%. SESAME decides to $20 million of permanent debt atacou of debt of and use the proceeds to repurchase shares. What is the market value of SESAME? (8 marks) Question 4 FLAG QUESTION SESAME is an all-equity firm. Its earnings before interest and tax (EBIT) is expected to be S10 million at 1 and will grow at a rate of 29 per year. The cost of equity capital for this unlevered finmis 16%. Assume a Modigliani and Miller world with corporate tax of 30%. SESAME decides to $20 million of permanent debt at a cost of det of and use the proceeds to repurchase shares. What is the market value of SESAME? (8 marks)

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