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unlevered firm and it has a constant expected EBIT of 2 million dollar per year. fIRm tax rate is 0% and its market value is

unlevered firm and it has a constant expected EBIT of 2 million dollar per year. fIRm tax rate is 0% and its market value is 12 million dollar the company has 1.2 million shares outstanding .the fIRM plans to raise 5 million debt and retire equity with proceeds. the cost of debt is 10%. assume millers proportion hold true .what is the market value of the equity after recapitalization

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