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The market value of Beta Corp's debt is $300mil, and its cost of debt is 5 percent. Beta is expected to have earnings before interest

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The market value of Beta Corp's debt is $300mil, and its cost of debt is 5 percent. Beta is expected to have earnings before interest and tax of $100 mil. in perpetuity. Assume that every investor can borrow at 5 percent per year. Corporate tax rate is 35%. Assuming Beta meets its earnings estimates, what will be the annual dollar return (wich is also called Net Income) to 50% equity in Beta Corporation? O A. $33.185 mil OB. $55.25 mil. OC. $27.625 mil. OD. $21.483 mil

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