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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