Question #6 (10 points) MBI LLC expects an EBIT of $2,300 every year forever. The...
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Question #6 (10 points) MBI LLC expects an EBIT of $2,300 every year forever. The company currently has no debt and is valued at $12,650. The tax rate is 23 percent. SHOW YOUR WORK 1) What will the value of the firm be if the company takes on debt equal to 50 percent of its unlevered value? Answer 2) What will the value of the firm's equity after the capital restructuring? Answer 3) Suppose the company will borrow the debt at a cost of 6 percent. What will the firm's new cost of equity be? Answer 4) What will the firm's new WACC be
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