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Question 9 (10 marks) Nodebt Ltd has a capital structure of 100% ordinary equity with a current return on equity of 18%: Its Earnings before

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Question 9 (10 marks) Nodebt Ltd has a capital structure of 100% ordinary equity with a current return on equity of 18%: Its Earnings before Interest and Taxation was $142,857. Nodebt pays tax at the rate of 30%. a) What is the current market value of Nodebt Ltd? (2 marks) Click or tap here to enter text. b) What is the Weighted Average Cost of Capital? (2 marks) Click or tap here to enter text. c) What is the market value of Nodebt Ltd after it issues the debt. (1 mark) Click or tap here to enter text d) What is the market value of Nodebt Ltd's equity after it issues the debt. (1 mark) Click or tap here to enter text. e) What is the cost of equity (ke) after it issues the debt. (1 mark) Click or tap here to enter text. f) What is the new Weighted Average Cost of Capital? (1 mark) Click or tap here to enter text. 8) Explain what has happened to the WACC and why? (2 marks) 1:31 10/27/a O BE 9 E Type here to search

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