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what I what is cost of equity before cap recapitalization option a 16.67 be 20% c 21.4 3% 13.3% f Expert Q&A unlevered firm and
what I what is cost of equity before cap recapitalization option a 16.67 be 20% c 21.4 3% 13.3%
f Expert Q&A unlevered firm and it has a constant expected EBIT of 2 million dollar per year. flRm 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 recapitalizationStep by Step Solution
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