Hello, could you give me some sugesstions about the question? Use the following to answer questions 14-18:

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Hello, could you give me some sugesstions about the question?

Use the following to answer questions 14-18: The current market rate of return is 12% and the risk-free rate is 4%. You have been given the job of determining your firm's cost of capital components. The company has 10 million shares outstanding with a current value of $22.50 per share. The debt represents 30% of the capital structure and the yield to maturity is 12%. The of the equity is 1.4 and the tax rate if 30%.

What is the market value of firm and the debt respectively?

Posted Date: May 13, 2024 03:23 AM

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Hello, could you give me some sugesstions about the question? Use the following to answer questions 14-18:

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To determine the market value of the firm and the debt we need to calculate the values based on the ... View the full answer

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