t&t

Question 12 ( 6 points) T\&T is a zero-growth company. It's tax rate is 40 percent. The firm's camines before intereat and taxes (EBTT) are $100,000 and has 10,000 shares of common stock outstanding siling at a price per ahare of \$60.00. The firm is considering moving to a capital structure that is comprived of 40 percent debt and 60 percent equity, based on market values. What is the new value of the firm after the recapitalization if its investhistent bankers believe its weighted average cost of capital would be 9.5 percent after the change in capital structure? $813,008 5705,882 5631,579 $1,176,471