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use the information below to calculate Wacc equity information: 50 million shares; price 80 $; beta 1.5 ;market risk premium 9%; risk free rate =5%
use the information below to calculate Wacc
equity information: 50 million shares; price 80 $; beta 1.5 ;market risk premium 9%; risk free rate =5%
debt information : 1 billion in outstanding debt (face value ; current qoute price :110; coupon rate =9% , semiannual coupons , 15 years to maturity , tax rate =40 %
mike corporation is a zero growth firm with expected EBIT Of 250000$ and a corporate tax of 40 %. mike uses 1 million of debt financing and the cost of equity to unlevered firm in the same risk class is 15% . the personal tax of mike investors are 30 % on debt (interest ) income abd 20%( on average) on income from stocks
what is tge value of the firm according to MM without taxes ?
what is the value of the firm according to MM with corporate taxes ?
what is the firm cost of equity with corporate taxes if it debt cost is 10% ?
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