Mojito Mint Company has a debtequity ratio of .40. The required return on the companys...
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Mojito Mint Company has a debtequity ratio of .40. The required return on the companys unlevered equity is 14 percent, and the pretax cost of the firms debt is 8.5 percent. Sales revenue for the company is expected to remain stable indefinitely at last years level of $19,000,000. Variable costs amount to 70 percent of sales. The tax rate is 35 percent, and the company distributes all its earnings as dividends at the end of each year
I can't figure out how to find the value of equity
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