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Idealized World without Taxes 5 to A firm has a perpetual EBIT of $65 million, a debt-to-equity ratio of 1, a BD of O, an
Idealized World without Taxes 5 to A firm has a perpetual EBIT of $65 million, a debt-to-equity ratio of 1, a BD of O, an re of 10%, and a market value of $1,000 million. The risk-free rate is 3%, and the expected return on the market is 10%. Assume an idealized world without taxes and with well functioning markets. 1 point What is the firm's return on assets if you take the firm through a restructuring process that raises the debt-to-equity ratio to 3? Enter your answer in percent with two decimals. Type your
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