Netflix has a significant unrealized capital gains position in MBG. At a press conference MBG mentioned its plans to increase the debt ratio. Netflix managers are concerned that a change in capital structure will affect Netflix.

 

Interest rate	8%
Debt market value	$100 millones
# Shares outstanding	10 millones
Market price per share	$30
Cost of capital if financed by capital	10.3%
marginal tax rate	35%

What is the structure of MBG?

Answer rating: 100% (QA)

The information provided does not explicitly state the capital structure of MBG the company mentione... View the full answer