Question: please hand written and explained steps TRU Market 6 - Questions 29 to 32 TRU markets has an uncovered Cost of capital of 14 percent,
TRU Market 6 - Questions 29 to 32 TRU markets has an uncovered Cost of capital of 14 percent, a tax rate of 32 percent and expected earnings by 'Interest taxes of $ 18,200. The company has $ 14,000 in bonds out andling that have a 8 percent coupon and pay interest annually. The bordo are Setung at par Janue. a) What is the value of the unlevered Kim? b) What is the value of the levered firm? c) What is the value of equity? d.) What is the levered cost of equiry
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