Uses natural ingredients in their makeup products

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Greta Cosmetics is a door-to-door sales makeup company that uses natural ingredients in their makeup products. The company is considering expanding operations and transitioning from a debt-free company to using debt.

Question: Using the Miller Theory, determine Greta Cosmetics Company’s valuation. Use 145 million as the value of the unlevered firm, a 40% tax rate, a marginal rate on stock of 12%, and a debt level of $30,000,000 with a marginal rate of 9%.

Reference no: EM132052962

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