archimedes common stock has a book value of $83 million and a market value of $6 million the corporate tax rate, federal plus state, is 50 percent archimedes is in a cyclical business its expected ebit is $2 million, with a standard deviation of $15 million the average debttoequity ratio of other companies in the industry is 047

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The value of Archimedes equity would be 0 if the company goes bankrupt and ... View the full answer