Multiple Choice
The Brassy Co. has expected EBIT of $910, debt with a face and market value of $2,000 paying an 8.5% annual coupon, and an unlevered cost of capital of 12%. If the tax rate is 34%, what is the value
Of the Brassy's equity?
A) $3,258
B) $3,685
C) $5,685
D) $6,325
E) $7,005
Correct Answer:
Verified
Correct Answer:
Verified
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