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Debt and solve for the ebit

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Once Bitten Corp. uses no debt. The weighted average cost of capital is 5 percent. If the current market value of the equity is $16 million and there are no taxes, what is EBIT? Note: Use the M&M proposition I formula without taxes and without debt and solve for the EBIT. (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g. 1,234,567.)

Reference no: EM131041970

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