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Solve the residual income

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Question 1: Mazia automotive inc. is specialised in manufacturing spare plugs. As per last years filling the company's equity worth$1200 million and the EBIT $300 million. Mazia's before tax of debt and the cost of capital are 6% and 12% resp. If the marginal tax is 35% and the debt/equity is 0.70. Calculate the residual income.

Reference no: EM132586402

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