market value of the equity is $2.3 million and there are no taxes. According to M&M Proposition what willbe te value of e ompay if it changes to a debt-equity ratio of .857 36) Lamont Corp. is debi-free and has a weighted average cost of capital of 12.7 percent. The current A) S15,393,701 B) $1,955,000 C) $2,300,000 D) S18,110,236 E) $2,705,882