Describing capital structure

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Reference no: EM1336848

Abc is currently in this situation EBIT =$4.7million , tax rate =.40,D=2million,rd=.10Rs=.15,shares outstanding=600,000and stock price = $30.00Debt is perpetual and all earnings are paid out as dividends. Question are the total market value of the firms stock and the firms total market value ? What is the firms weighted average cost of capital?

Reference no: EM1336848

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