Question 13 Current Total assets $3,000,000,000 Tax rate 25% Operating income (EBIT) $6,000,000,000 Debt ratio 0% Interest expense $0 WACC 10% Net income $380,000,000 M/B ratio 1.20x Share price $32.00 EPS $3.80 Estimated growth rate 0% Dividend payout ratio 100% After going through extensive analysis, the company has decided to target 30% debt and 70% equity based on market values. This strategy is expected to increase the cost of equity to 11%, assuming the pre-tax cost of debt 5.2%. What is the target firm value? O $45,000,000,000.0 $50,732,807,215.3 $40,909,090,909.1 $48,596,112,311.0 1 pts