Question: please answer last question and before 11:59 please thanks so much! Hemaining Time: 01.03-01 University Center Co. currently has EBIT of $37,000 and is all
please answer last question and before 11:59 please thanks so much!Hemaining Time: 01.03-01 University Center Co. currently has EBIT of $37,000 and is all equity financed. EBIT is expected to stay at this level indefinitely. The firm pays corporate and quito 34% of taxable income. The cost of equity for this fimm is 11% What is the market value of the Tomy Enter your answer founded to two decimal pinoon. 222.000 Cert T. 01 Cik Verity to proceed to the next part of the question. This question has 3 parte, so you will be clicking verty 3 timeo Suces the man value of 5222,000 when is guy wood. Now there 42.000 af det ytrigin of per year and the proces to the exto te permanent What will be there om Enter your rounded a womac 238280 Ww the feet whether your and decorate 704200 0.01 Dorother of the questo Submit Assignment Quit & Save Question Mona MacBook 194280 Correct responses 194.20010.01 Cick "Verily to proceed to the next part of the question Suppose that with the $42,000 of debt and no costs to financial distress the firm has a value of $236.280. Supposo, in addition 1) The debt issue raises the possibility of baninupty. 2) The firm has a 25% chance of going bankrupt after 4 years 3) it goes bankrupt, it will incur bankruptcy costs of 70,000, 4) The discount rate is 11% What is the value of the firm? Enter your answer rounded to two decimal places Number Click "verly to proceed Section Attempt 1 of 1 Verily Submit Assignment Quit & Save MacBook Air
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
