LittleCo has a levered cost of equity of 19%. They bring in $300,000 in EBIT per year
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LittleCo has a levered cost of equity of 19%. They bring in $300,000 in EBIT per year and pay $75,000 per year in interest. Five years from now, they will receive a one-time payment of $900,000. What is the value of their equity?
Related Book For
Intermediate Financial Management
ISBN: 9780357516669
14th Edition
Authors: Eugene F Brigham, Phillip R Daves
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