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The following information has been presented to you about the Gibson Corporation. Total assets $3,000 million Tax rate 25% Operating income (EBIT) $800 million Debt

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The following information has been presented to you about the Gibson Corporation. Total assets $3,000 million Tax rate 25% Operating income (EBIT) $800 million Debt tatlo 05 Interest expense 50 million WACC 30% Net income $480 million M/B ratio 1.00% Share price $32.00 EPSHOPS 33.20 The company has no growth opportunities (g = 0), so the company pays out all of its earning a dividends (EPS DPS). The conduit believes that if the company was a capital structure financed with 20% debt and 80% cquity (based on market value that the cost of equity will ineree to aid that the prestar com ele will be the company makes this change, what would be the total market value (in millions of the firm a $4800 b55,400 C. 56.000 d. 54,400 15200 dominant

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