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XY Company has the following Data for the current year-------------- Earning before interest and taxes (EBIT) = $40,000, Tax Rate (T) 20%. Fair Value of
XY Company has the following Data for the current year-------------- Earning before interest and taxes (EBIT) = $40,000, Tax Rate (T) 20%. Fair Value of long term debt (D)$600,000, rd 8%, rs 10%. Number of outstanding (n) 6,000, Stock price (P0) 12, Assume that: 1) the market value of share (S) is stable. 2) all earnings are paid as dividends, 3) the long term debt is perpetual. S=P0n=$? V= D+S=$? D/V= ? S/V=?% WACC=?%
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