Question: EBIT = $ 4 , 5 0 0 , 0 0 0 3 0 - year maturity, 3 , 0 0 0 annual coupon bonds
EBIT $
year maturity, annual coupon bonds number of bonds with a coupon rate of and a current market value of $ per bond.
year maturity, semiannual coupon bonds with a coupon rate of traded at of their principal value.
Tax rate
Cost of unlevered equity RU
The bond par value for this firm is $ per bond, regardless of maturity
Assuming that there is no cost of financial distress. If the firm wants to maintain a cost of levered equity of wh$
$
$
$
$at is the value of debt it should have on its capital structure?
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