The Brassy Co

question 3

Multiple Choice

The Brassy Co. has expected EBIT of $910, debt with a face and market value of $2,000 paying an 8.5% annual coupon, and an unlevered cost of capital of 12%. If the tax rate is 34%, what is the value of the Brassy's equity?

• A) $3,258
• B) $3,685
• C) $5,685
• D) $6,325
• E) $7,005

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Definitions:

Investment Plans

Financial strategies designed to allocate resources towards future profit and growth opportunities.

Shackleton's Leadership

Refers to the leadership style and practices of Ernest Shackleton, especially during his Antarctic expeditions, which are noted for his exceptional crisis management and ability to maintain crew morale under extreme conditions.

Leading By Example

A leadership approach where leaders demonstrate the behaviors, ethics, and actions they expect from their team members by first embodying them themselves.

Communicating A Vision

The act of sharing and explaining a future goal or direction to others in a way that inspires and motivates them.