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Question 3 (1 point) A company has an EBIT of $3,255 in perpetuity. The unlevered cost of capital is 13.34%, and there are 17,610 common
Question 3 (1 point) A company has an EBIT of $3,255 in perpetuity. The unlevered cost of capital is 13.34%, and there are 17,610 common shares outstanding. The company is considering issuing $7,160 in new bonds at par to add financial leverage. The proceeds of the debt issue will be used to repurchase equity. The YTM of the new debt is 8.53% and the tax rate is 22%. What is the value of the firm after the restructuring? $20,607 $21,123 $21,638 $22,153 $22,668
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