Retirement account at the time he retires

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Reference no: EM131964155

1. Once Bitten Corp. uses no debt. The weighted average cost of capital is 5 percent. The current market value of the equity is $16 million and the corporate tax rate is 35 percent. What is EBIT? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Round your answer to 2 decimal places, e.g., 32.16.) EBIT $

2. Bill is 22, just starting his career and plans to contribute $2000 to his retirement account in a year. He is planning to retire early at 55 and wants to know how how much he will have in his retirement account at the time he retires. He thinks he will earn a return of 8% on his investments and his contributions will grow by 4% each year.

Reference no: EM131964155

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