Roxy International Has an EBIT of $15,000,debt with a Market

question 64

Multiple Choice

Roxy International has an EBIT of $15,000,debt with a market value of $25,000 and a required return on assets of 12%.Assuming a corporate tax rate of 40%,what is firm's value?

• A) $266,666,667
• B) $182,666,667
• C) $106,666,667
• D) $100,000,000

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