Question
i have 2 questions 1) Timco has EBIT of 100. This should continue forever. The tax rate is 40%. The cost of equity is 12%.
i have 2 questions
1) Timco has EBIT of 100. This should continue forever. The tax rate is 40%. The cost of equity is 12%. Find the firm's value and the WACC if Timco uses no debt.
2) Timco has EBIT of 100. This should continue forever. The tax rate is 40%. The cost of equity is 12%. Find the firm's value and the WACC if Timco uses 50 in 5% debt.
'i need these 2 questions answered asap i have 39 minutes to be answered
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
5th edition
321280299, 321280296, 978-0321280299
