PROBLEM SET 6 Question: imagine a treasurer want to calculate the value of his firm using Miller and Modigliani where all assumtions hold. He only gives us the information below. Can you calculate, the firm's cost of equity Rsl, then its cost of debt Rdl, its WACCI (so its cost of capital) and finally the value of the firm VI? Do the exact same assuming the firm will never have taxes - 50 T = 0 given D/E = 0.20 Problem: What I know when all MM condition hold (with taxes) Taxes EBT 120.00 Rsu 9.00% 0.00% Rd Question is figure out the firm's total value HINT IT'S ALWAYS THE SAME STEPS 1) calculate the cost of equity for the firm 2) calculate the cost of debt of the firm 3) calculate the wacc of the firm 4) calculate the total value of the firm THE EXAMPLES IN THE BOOK ON PAGE 380 to 382 ARE GOOD EXAMPLES WITH AND WITHOUT TAXES PROBLEM SET 6 Question: imagine a treasurer want to calculate the value of his firm using Miller and Modigliani where all assumtions hold. He only gives us the information below. Can you calculate, the firm's cost of equity Rsl, then its cost of debt Rdl, its WACCI (so its cost of capital) and finally the value of the firm VI? Do the exact same assuming the firm will never have taxes - 50 T = 0 given D/E = 0.20 Problem: What I know when all MM condition hold (with taxes) Taxes EBT 120.00 Rsu 9.00% 0.00% Rd Question is figure out the firm's total value HINT IT'S ALWAYS THE SAME STEPS 1) calculate the cost of equity for the firm 2) calculate the cost of debt of the firm 3) calculate the wacc of the firm 4) calculate the total value of the firm THE EXAMPLES IN THE BOOK ON PAGE 380 to 382 ARE GOOD EXAMPLES WITH AND WITHOUT TAXES