Vanshika Sports Company expects an EBIT of $31,480 every year forever. The company currently has...
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Finance
Vanshika Sports Company expects an EBIT of $ every year forever. The company currently has no debt and its cost of equity is percent. The tax rate is percent. A Calculate the firm's current value with no debt. B Suppose the company can borrow at percent. What will the value of Vanshika Sports Company be if it takes on debt equal to percent of its unlevered value?
Vanshika Sports Company expects an EBIT of $ every year forever. The company currently has no debt and its cost of equity is percent. The tax rate is percent.
A Calculate the firm's current value with no debt.
B Suppose the company can borrow at percent. What will the value of Vanshika Sports Company be if it takes on debt equal to percent of its unlevered value?
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