Question: ABC Company currently has $ 1 1 5 , 0 0 0 , 0 0 0 in capital structure composed of $ 2 5 million
ABC Company currently has $ in capital structure composed of $ million in debt @ and million shares of common stock currently selling at $ per share. The company is at the tax bracket, and has EBIT this year of $ million. ABC plans to increase their debt outstanding to $ million but the new interest rate would be The companys current beta is the risk free rate is and the market risk premium is Find the required rate of return on the companys equity at the higher debt exposure, the unlevered and levered beta, and the companys WACC, and the market value of the firm. PLEASE SHOW ALL WORK
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