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Title: A firm has an operating profit of $300,000, interest of $35,000, and a tax rate of 40 percent. The ...
Post by: pompa on Mar 7, 2017
A firm has an operating profit of $300,000, interest of $35,000, and a tax rate of 40 percent. The firm has an after-tax cost of debt of 5 percent and a cost of equity of 15 percent. The firm's target capital structure is set at a mix of 40 percent debt and 60 percent equity. Assuming this as the optimum capital structure, the value of the firm is ________.
A) $1.4 million
B) $2.2 million
C) $1.8 million
D) $6.0 million


Title: Re: A firm has an operating profit of $300,000, interest of $35,000, and a tax rate of 40 percent. ...
Post by: alovely on Mar 7, 2017
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Title: Re: A firm has an operating profit of $300,000, interest of $35,000, and a tax rate of 40 percent. ...
Post by: seki152 on Oct 12, 2019
thank you


Title: Re: A firm has an operating profit of $300,000, interest of $35,000, and a tax rate of 40 percent. ...
Post by: Reo Suen on Apr 27, 2020
thakn you


Title: Re: A firm has an operating profit of $300,000, interest of $35,000, and a tax rate of 40 percent. ...
Post by: Tan Ah Ji on Jun 28, 2020
thank you


Title: Re: A firm has an operating profit of $300,000, interest of $35,000, and a tax rate of 40 percent. ...
Post by: Ria Jambusaria on Dec 15, 2020
thanks