Multiple Choice
Miller's Drugstore
Miller's drugstore has an EBIT of $15,000, debt with a market value of $25,000 and a required return on assets of 12%.
-Assuming a corporate tax rate of 35%, what is Miller's Drugstore's value?
A) $125,000
B) $25,000
C) $133,750
D) $75,000
Correct Answer:
Verified
Correct Answer:
Verified
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