Question: the question will save this response. Question 12 Company A and Company B are identical in all respects except for capital structure Company As all
the question will save this response. Question 12 Company A and Company B are identical in all respects except for capital structure Company As all equally financed and it pays dividends of 50,000 to its shareholders each year in perpetuty Company Ns weighted average cost of capital es 2 Company B tus debt at 60,000 in its capital structure 8 Assume taxes are paid at 20%, but that capital markets are otherwise perfect What is the total value of Company B? 200,000 215,000 212.000 260,000
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