Question: debt - to - equity ratio will be 2 3 and it will maintain that ratio in perpetuity. The cost of debt is 5 %
debttoequity ratio will be and it will maintain that ratio in perpetuity. The cost of debt is and the tax rate is Answer the following questions.
Part
What is the levered cost of equity after the repurchase? Express your answer in percentage form rounded to one decimal place.
Cost of equity
Part
What is the company's WACC after the repurchase? Express your answer in percentage form rounded to one decimal place.
WACC ;
Part
What is the DCFMNAC value of the levered firm after the repurchase? Express your answer in millions of dollars rounded to the nearest million.
Value of the firm
Part
What is the stock price after the repurchase? Express your answer in dollars and round to two decimal places.
Stock price $
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