Use the Information for the Question(s)below

question 96

Multiple Choice

Use the information for the question(s) below.
Consider two firms,With and Without,that have identical assets that generate identical cash flows.Without is an all-equity firm,with 1 million shares outstanding that trade for a price of $24 per share.With has 2 million shares outstanding and $12 million in debt at an interest rate of 5%.
-According to MM Proposition I,the stock price for With is closest to:

• A)$8.00
• B)$24.00
• C)$6.00
• D)$12.00

Understand the significance of empirical evidence in the scientific method.

Evaluate philosophical arguments on the nature of truth and knowledge.

Explore the relationship between rationality, truth, and belief.

Comprehend the role of causality in understanding the natural world.

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