Question
SPK has EBIT of 100 million; Debt ( =$ 50 ) million; Cost of debt ( =10 % ); Unlevered cost of capital ( =11
SPK has EBIT of 100 million; Debt \( =\$ 50 \) million; Cost of debt \( =10 \% \); Unlevered cost of capital \( =11 \% \) and its tax rate is \( 21 \% \). Calculate the total value of the firm with leverage. A) \( \$ 769.10 \) B) \( \$ 607.92 \) C) \( \$ 728.68 \) D) 776.73 E) \( \$ 516.79 \)
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Entrepreneurial Finance
Authors: J . chris leach, Ronald w. melicher
4th edition
538478152, 978-0538478151
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