In question 16.10 suppose the corporate tax rate is 35 percent. What is EBIT in this case?

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In question 16.10 suppose the corporate tax rate is 35 percent. What is EBIT in this case? What is the WACC? Explain.

In Problem 16.10

Nina Corp. uses no debt. The WACC is 9 percent. If the current market value of the equity is $37 million and there are no taxes, what is EBIT?

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Corporate Finance

ISBN: 978-0071339575

7th Canadian Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Ro

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Question Posted: Jun 18, 2015 05:19 AM

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In question 16.10 suppose the corporate tax rate is 35 percent. What is EBIT in this case?

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