What is the firm cost of equity

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Reference no: EM13948587

(1) What is the value of the firm according to MM with corporate taxes? If the following is true: EBIT: $100,000 rd: 12% Tc: 30% Debt: $500,000 rsU: 16%

$475,875

$528,750

$587,500

$646,250

$710,875

(2) What is the firm's cost of equity? If the following is true:

EBIT: $100,000 rd: 12% Tc: 30%

Debt: $500,000 rsU: 16%

21.0%

23.3%

25.9%

28.8%

32.0%

Reference no: EM13948587

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