Multiple Choice
The Wrangler Co. has expected EBIT = $9,250, debt with a face and market value of $14,000 paying a 9% annual coupon, and an unlevered cost of capital of 12%. If the tax rate is 39%, what is
The value of Wrangler's equity?
A) $38,481
B) $52,481
C) $55,635
D) $58,525
E) $65,600
Correct Answer:
Verified
Correct Answer:
Verified
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