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The following information relates to the Falcon Division of Xenon Enterprises: Interest rate on debt capital Cost of equity capital Market value of debt capital
The following information relates to the Falcon Division of Xenon Enterprises: Interest rate on debt capital Cost of equity capital Market value of debt capital Market value of equity capital Income tax rate 8% 12% $ 50 million $80 million 30% On the basis of this information, Falcon's weighted-average cost of capital is closest to: Multiple Choice O 7.3%. O 8.3% O 9.5%. 10.8% O None of the answers is correct. Endotrope Corporation has an after-tax operating income of $3,200,000 and a 9% weighted-average cost of capital. Assets total $7,000,000 and current liabilities total $1,800,000. On the basis of this information, Endotrope's economic value added is: Multiple Choice $2,408,000. $2,732,000. $3,668,000 $3,992,000. None of the answers is correct
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