Question: using the information listed in the tables above Use the above firm's capital structure options to answer the next two questions 8) The above firm's
using the information listed in the tables above
Use the above firm's capital structure options to answer the next two questions 8) The above firm's optimal capital structure occurs when: a. Debt 20% Equity 80% b. Debt 40% Equity 60% c. Debt 60% Equity 40% d. Debt 80% Equity 20% e. Not enough information to determine 9) The expected return of equity shareholders with a debt to equity ratio of 40/60 is: a. 17% b. 17.5% c. 18% d. 18.5% e. Not enough information to determine 10) What is the value of firm XYZ with an after tax cash flow of $1 million per year indefinitely and WACC of 10% : a. 1.1 million b. 10 million c. 100 million d. Not enough information to determine
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