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Optimal capital structure Cosmetic Manufacturers is contemplating changing the capital structure of the firm. The firm has $45,000,000 in total assets, earnings before interest and
Optimal capital structure Cosmetic Manufacturers is contemplating changing the capital structure of the firm. The firm has $45,000,000 in total assets, earnings before interest and taxes of $8,500,000, and is taxed at a rate of 40%. a. Complete the following table showing the values of debt, equity, and the total number of shares of common stock. The book value is $20 per share.
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