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johnpaech johnpaech
wrote...
Posts: 1098
Rep: 7 0
6 years ago
If Flagstaff currently maintains a debt to equity ratio of 1, then the value of Flagstaff as an all equity firm would be closest to:
A) $73 million
B) $80 million
C) $115 million
D) $100 million
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
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Replies
wrote...
6 years ago
C
Explanation:  C) rwacc =   rE +   rD (Pre tax)
rwacc =   .13 +   .07 = .10
VU =   =   = $114.29 million
johnpaech Author
wrote...
5 years ago
You took a load off my back, thanks for answering correctly
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