Exxo Mobile expects an EBIT of $20,000 every year in perpetuity. The firm currently has no debt, and its cost of equity is 15 percent. The tax rate is 30 percent. The firm plans to borrow money to repurchase its stock such that the debt- value ratio after the restructuring becomes 50 percent permanently. What is the firm value if the firm borrows at 8 percent? Group of answer choices $135,922.33 $93,333.33 $156,862.75 $109,803.92
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Exxo Mobile expects an EBIT of $20,000 every year in perpetuity. The firm currently has no debt, and its
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- Cede & Co. expects its EBIT to be $163000 every year forever. The company can borrow at 8 percent. The company currently has no debt and its cost of equity is 10 percent. The tax rate is 23 percent. If the company borrows $185,000 and uses the proceeds to buy back equity, what is the weighted average cost of capital after the recapitalisation is complete? Group of answer choices 9.67% 15.13% 14.32% 8.17%Cede & Co. expects its EBIT to be $80,000 every year forever. The firm can borrow at 4 percent. The firm currently has no debt, and its cost of equity is 10 percent. If the tax rate is 35 percent, what is the value of the firm? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Value of the firm $ What will the value be if the company borrows $122,000 and uses the proceeds to repurchase shares? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Value of the firm $Cede & Co. expects its EBIT to be $83,000 every year forever. The firm can borrow at 11 percent. The firm currently has no debt, and its cost of equity is 15 percent. a. If the tax rate is 25 percent, what is the value of the firm? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What will the value be if the company borrows $144,000 and uses the proceeds to repurchase shares? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
- Meyer & Co. expects its EBIT to be $115,000 every year forever. The firm can borrow at 7 percent. The company currently has no debt, and its cost of equity is 13 percent. a. If the tax rate is 24 percent, what is the value of the firm? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What will the value be if the company borrows $255,000 and uses the proceeds to repurchase shares? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)Calvert Corporation expects an EBIT of $25,100 every year forever. The company currently has no debt, and its cost of equity is 15.2 percent. The company can borrow at 10 percent and the corporate tax rate is 24 percent. a. What is the current value of the company? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)b-1. What will the value of the firm be if the company takes on debt equal to 60 percent of its unlevered value? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)b-2. What will the value of the firm be if the company takes on debt equal to 100 percent of its unlevered value? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)c-1. What will the value of the firm be if the company takes on debt equal to 60 percent of its levered value? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g.,…Meyer & Co. expects its EBIT to be $78,000 every year forever. The firm can borrow at 7 percent. Meyer currently has no debt, and its cost of equity is 12 percent. If the tax rate is 35 percent, what is the value of the firm? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) Value of the firm $ 650,000.00|8 What will the value be if the company borrows $103,000 and uses the proceeds to repurchase shares? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) Value of the firm $ 720,887.25
- Calvert Corporation expects an EBIT of $25,500 every year forever. The company currently has no debt, and its cost of equity is 15.4 percent. The company can borrow at 10.2 percent and the corporate tax rate is 21 percent. a. What is the current value of the company? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b-1. What will the value of the firm be if the company takes on debt equal to 50 percent of its unlevered value? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b-2. What will the value of the firm be if the company takes on debt equal to 100 percent of its unlevered value? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c-1. What will the value of the firm be if the company takes on debt equal to 50 percent of its levered value? (Do not round intermediate calculations and round your answers to 2 decimal places,…Cede & Co. expects its EBIT to be $163000 every year forever. The company can borrow at 8 percent. The company currently has no debt and its cost of equity is 10 percent. The tax rate is 23 percent. If the company borrows $185,000 and uses the proceeds to buy back equity, what is the weighted average cost of capital after the recapitalisation is complete? O 15.13% O 9.67% O 14.32% O 8.17%I need the answer as soon as possible
- Ice Cream Sandwich Co. expects EBIT of $100,000 every year forever. Ice Cream Sandwich Co. currently has no debt and its cost of equity is 12%. The firm can borrow at 3%. The corporate tax rate is 31%. What is the value of the firm? Enter your answer rounded to two decimal places. Correct response: 575,000±0.01 575000 Click "Verify" to proceed to the next part of the question. This question has 4 parts, so you will be clicking verify 4 times. Given that the firm has a value of $575,000 when it is all equity, what will be the value of the firm if Ice Cream Sandwich Co. borrows $230,000 of permanent 790478.78 debt and uses the proceeds to buy back stock? Enter your answer rounded to two decimal places. Correct response: 646,300±0.01 Click "Verify" to proceed to the next part of the question. ✪ Given that the firm has a value of $575,000 when it is all equity, how can Ice Cream Sandwich Co. maximize the value of the firm? What will be the maximum value if there are no costs to financial…Key Lime Pie Co. expects EBIT of $100,000 every year forever. Key Lime Pie Co. currently has no debt and its cost of equity is 10%. The firm can borrow at 6%. The corporate tax rate is 26%. What is the value of the firm? Enter your answer rounded to two decimal places. 740,000.00 O Correct response: 740,000±0.01 Click "Verify" to proceed to the next part of the question. This question has 4 parts, so you will be clicking verify 4 times. Given that the firm has a value of $740,000 when it is all equity, what will be the value of the firm if Key Lime Pie Co. borrows $260,000 of permanent debt 807,000 and uses the proceeds to buy back stock? Enter your answer rounded to two decimal places. Correct response: 807,600±0.01 Click "Verify" to proceed to the next part of the question. Given that the firm has a value of $740,000 when it is all equity, how can Key Lime Pie Co. maximize the value of the firm? What will be the maximum value if there are no costs to financial distress? Enter your…None
