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Use the following information to answer the questions: Operating assets = $12,000 Operating liabilities = $4,000 Book value of debt =$6,000 Market value of debt

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Use the following information to answer the questions: Operating assets = $12,000 Operating liabilities = $4,000 Book value of debt =$6,000 Market value of debt = $7,200 Book value of equity = $2,00 Market value of equity = $3,600 Value of operating leases = $5,000 After-tax required return on unsecured debt = 5% Required return on equity (CAPM) = 12% After-tax required return on secured debt = 4% Compute the invested Capital before adjustment for leases and after the adjustment for leases. Invested capital before adjustment for leases = $8,000; invested capital after adjustment for leases = $13,000. Invested capital before adjustment for leases = $8,000; invested capital after adjustment for leases = $17,000. Invested capital before adjustment for leases = $12,000; invested capital after adjustment for leases = $13,000. Invested capital before adjustment for leases = $8,000; invested capital after adjustment for leases = $5,000. Use the following information to answer the questions: Operating assets = $12,000 Operating liabilities = $4,000 Book value of debt =$6,000 Market value of debt = $7,200 Book value of equity = $2,00 Market value of equity = $3,600 Value of operating leases = $5,000 After-tax required return on unsecured debt = 5% Required return on equity (CAPM) = 12% After-tax required return on secured debt = 4% Compute the invested Capital before adjustment for leases and after the adjustment for leases. Invested capital before adjustment for leases = $8,000; invested capital after adjustment for leases = $13,000. Invested capital before adjustment for leases = $8,000; invested capital after adjustment for leases = $17,000. Invested capital before adjustment for leases = $12,000; invested capital after adjustment for leases = $13,000. Invested capital before adjustment for leases = $8,000; invested capital after adjustment for leases = $5,000

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