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Need bottom one Maynes Corporation is currently all equity financed and has a value of 555 ton Investors currently require a return of 10.2 percent
Need bottom one
Maynes Corporation is currently all equity financed and has a value of 555 ton Investors currently require a return of 10.2 percent on common stock. Maynes has a marginal tax rate of 30 percent Maynes plans to issue 550 m ion of debt with a a return of 3.7 percent and use the proceeds to repurchase common stock Winat will be the value of the firm after the dest issue? Please state your answer in ons rounded to two decimal places. Enter your response below 100.00 Correct response: 10000.0 mln This question has 4 parts, so you will be clicking verty 4 times. Given that the value of the firm after the debt issue we be 100m on what we be the value of the equity after the debt issue? Please state your answer in ons rounded to two decimal places Enter your response below 50.00 Correct response: 500 om on Given that the value of the equity after the debt issue will be 550 milon, what will be the expected return on the stock after the debt issue? Enter your answer as a percentage and round to 2 decimal places. Do not enter the percentage sign as part of your answer. Enter your response below. 14.75 Correct response: 14.7580.62 Given that the expected return on the stock after the dent Issue will be 14.75%, what will be the weighted Average cost of Capital after the debt issue? Do not enter the percentage sign as part of your answer. Enter your response below. Number Section Attempt 1 of 1 VerifyStep by Step Solution
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