Question
Super Toy. Inc has an EBIT of $75,300, an unlevered cost of capital of 13.7 percent, and a tax rate of 21 percent. Suppose the
Super Toy. Inc has an EBIT of $75,300, an unlevered cost of capital of 13.7 percent, and a tax rate of 21 percent. Suppose the company wants to change its capital structure, and plans to take $150,000 of debt with a coupon rate of 7 percent. The debt is selling at face value ($1,000). What is the value of the equity in the firm?
| A. | $315,712 | |
| B. | $321,453 | |
| C. | $254,108 | |
| D. | $289,123 | |
| E. | None of the above |
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Factory Business System Audit Lean Manufacturing
Authors: Rolf Thorsten
1st Edition
1091908583, 978-1091908581
