Gail's Dance Studio Is Currently an All Equity fiRm That

question 150

Multiple Choice

Gail's Dance Studio is currently an all equity firm that has 80,000 shares of stock outstanding with a market price of $42 a share. The current cost of equity is 12% and the tax rate is 34%. Gail is
Considering adding $1 million of debt with a coupon rate of 8% to her capital structure. The debt will
Be sold at par value. What is the levered value of the equity?

• A) $2.4 million
• B) $2.7 million
• C) $3.3 million
• D) $3.7 million
• E) $3.9 million

Identify the alignment of mass media with dominant societal and political interests.

Recognize the representation and portrayal issues within mass media content.

Comprehend the challenges and biases present in news media.

Understand the dynamics of minority representation in fictional media over time.