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    Fundamentals of Financial Management Study Set 4
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    Exam 14: Capital Structure and Leverage
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    As a Consultant to First Responder Inc
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As a Consultant to First Responder Inc

Question 6

Question 6

Multiple Choice

As a consultant to First Responder Inc., you have obtained the following data (dollars in millions) (WACC - g) Oper. income (EBIT) New cost of equity (rs) Interest rate (rd) 8.00%


A) $2,982
B) $3,314
C) $3,682
D) $4,091
E) $4,545

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