Question
Pepitos has an ebit of $ 50,000,000.00 and a tax rate of 30%. The company could contract debt for $ 120,000,000.00 at a rate of
Pepitos has an ebit of $ 50,000,000.00 and a tax rate of 30%. The company could contract debt for $ 120,000,000.00 at a rate of 10.0% per year and the cost of the unlevered capital that it currently has is 15.0%.
Calculate the following: to.
The Value of the Company without debt $ ____________
b. The Capital of the Unlevered Company $ _____________
c. The Value of the Company with debt $ _______________
d. The Tax Benefit Amount $ ___________________
The Capital of the Company with debt $ ______________
F. The Financial Leverage of the Company if it contracts debt A / F = ___________
g. The cost of share capital, considering the effect of debt. Ke _______%
h. The Deleveraged Cost of Equity Capital Ke _________%
i. The Weighted Average Cost of Capital WACC Unlevered WACC U __________%
j. The WACC Weighted Average Cost of Capital considering debt WACC L __________%
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