Question: Question 107 points) Datney Electronics is currently an all equity firm that has 70.000 shares of stock outstanding with a market price of $42 a
Question 107 points) Datney Electronics is currently an all equity firm that has 70.000 shares of stock outstanding with a market price of $42 a sharo. The current cost of equity is 12% and the tax rate is 34%, The company is considering adding $1 million of debt with a coupon rute of 8% to her capital structure. The debt will be sold at par value. What is the levered value of the equity? 6 $3.28 million 9 $2.94 million $2.70 million 12 52.28 million $1.94 million 4 15
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