A firm has EBIT of $30 million.It has debt of $100 million and the cost of debt

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A firm has EBIT of $30 million.It has debt of $100 million and the cost of debt is 7%.Its unlevered cost of capital is 10% and tax rate at 35%.

a) What's its unlevered firm value?

b) What's its levered firm value?

c) What's its equity value?

Posted Date: May 17, 2024 09:01 PM

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A firm has EBIT of $30 million.It has debt of $100 million and the cost of debt

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