XYZ Co. expects its EBIT to be $80,000 every year forever. The firm can borrow at 14%.
Fantastic news! We've Found the answer you've been seeking!
Question:
a. What is the value of the Levered Firm?
b. What is the new cost of equity?
c. What is the new WACC?
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780135811603
5th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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