Question: Please don;t forget to include your formula's (3-9) This is M&M with no corporate taxes.Sci-fi is currently unlevered.All earnings are paid out as dividends, and
Please don;t forget to include your formula's
(3-9) This is M&M with no corporate taxes.Sci-fi is currently unlevered.All earnings are paid out as dividends, and the growth rate is zero.They plan to issue $100,000,000 in debt at 6% to buy back stock.The capital structure change is permanent.Fill in all of the missing information in the table below.
| Unlevered | Levered | |
| EBIT | 80,000,000 | 80,000,000 |
| INTEREST | ||
| Net Income | ||
| #Shares | 10,000,000 | |
| EPS | ||
| Unlevered return | 16% | 16% |
| Return on Equity rE | ||
| Price | ||
| Firm Value (V) |
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