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Question 4 7 pts XYZ is an all-equity financed company. It has EBIT of $12 million, a 33% tax rate, and a 15% cost of
Question 4 7 pts XYZ is an all-equity financed company. It has EBIT of $12 million, a 33% tax rate, and a 15% cost of equity. It is planning to issue debt in the form of five- year $58 million, 8% coupon bonds at an 8% YTM. At the end of the five years, XYZ will pay repay the bonds and return to being an all-equity firm. What is the PV of the tax savings? Please enter your answer in MILLIONS of dollars to two (2) decimal places (no commas or dollar signs). For example, enter $8.75 million as 8.75
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