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Vu Games and Game On! are identical firms except for their capital structures. Vu Games is an unlevered firm with $680,000 of equity. Game On!
Vu Games and Game On! are identical firms except for their capital structures. Vu Games is an unlevered firm with $680,000 of equity. Game On! is a levered firm with $425,000 of equity and $255,000 of debt at an Interest rate of 6.2 percent. Both Vu Games and Game On! have an expected EBIT of $84,000. Ignore taxes. Vu Games has a WACC of percent and Game On! has a WACC of percent Multiple Choice 12.35:12.35 16.10: 14.10 O 12.35: 14.10 O 14.10; 14.10 O 12.35: 11.05
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