The Brassy Co

question 70

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