What does this mean How to solve Reem Financial Services has an...

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Reem Financial Services has an expected EBIT of $63,000 in perpetuity and a tax rate of 21 percent. The firm has $115,000 in outstanding debt at an interest rate of 7 percent and its unlevered cost of capital is 12 percent.
A) What is the value of the company according to M&-M Proposition 1 with taxes?
B) Based on your responses in step A, should the company change its debt-equity ratio if the goal is to maximize firm value? Explain
Reem Financial Services has an expected EBIT of $63,000 in perpetuity and a tax rate of 21 percent. The firm has $115,000 in outstanding debt at an interest rate of 7 percent and its unlevered cost of capital is 12 percent.
A) What is the value of the company according to M&M Proposition 1 with taxes?
B) Based on your responses in step A, should the company change its debt-equity ratio if the goal is to maximize firm value? Explain
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