Question: An all - equity firm has a weighted average cost of capital of 1 4 . 4 percent. The current market value of its equity

An all-equity firm has a weighted average cost of capital of 14.4 percent. The current market value of its equity is $2,652,000. Assume there are no taxes. According to M&M Proposition II, what will be the value of the company if it changes to a debt-equity ratio of 0.42?
Multiple Choice
$2,729,350
$6,314,286
$11,027,016
$2,652,000
$5,012,280
An all-equity firm has a weighted average cost of capital of

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