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If you could provide the answer within an Excel template, that'd be great Banana Inc. has historically been an all-eqolty firm. The analyst expecis EBIT
If you could provide the answer within an Excel template, that'd be great
Banana Inc. has historically been an all-eqolty firm. The analyst expecis EBIT to be $1.5B in perpetuity starting one year from now. The cost of equity for the company is 12.5% and the tax rate is 35%. Suppose that the company borrows $3B and uses the funds to repurchase shares. What is the value of the firm if the present value of financial dlstress custs is $0.78 ? Answer rounding to two decimal places (in SB). Do not inolude any symithols, such dollar sign (\$). For example, if the answer is \$12.34500, enter 12.35. Banana Inc. has historically been an all-eqolty firm. The analyst expecis EBIT to be $1.5B in perpetuity starting one year from now. The cost of equity for the company is 12.5% and the tax rate is 35%. Suppose that the company borrows $3B and uses the funds to repurchase shares. What is the value of the firm if the present value of financial dlstress custs is $0.78 ? Answer rounding to two decimal places (in SB). Do not inolude any symithols, such dollar sign (\$). For example, if the answer is \$12.34500, enter 12.35 Step by Step Solution
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