Question
PLEASE HELP ASAP!!! (0) Consider the follwoing informtion: UCFAT is a level perpetuity. Firm value is = 100 million. Present value of tax benefits =
PLEASE HELP ASAP!!!
(0)
Consider the follwoing informtion:
UCFAT is a level perpetuity.
Firm value is = 100 million.
Present value of tax benefits = 20 million.
Amount of debt = unknown.
Interest rate on debt = 10%.
Unlevered cost of Equity = 20%.
Depreciation = 1 million per year.
New equipment = 1 million per year.
UCAFT is unlevered cashflow after tax.
a. what is the WACC of the firm? (two decimals)
b. What is the tax rate? (two decimals)
if the answer is intermediate use "99"
***The answer is not 18% or 22% I have already tried those**
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Crime And Punishment In The Future Internet
Authors: Sanja Milivojevic
1st Edition
036746800X, 978-0367468002
