question archive Maynes Corporation is currently all equity financed and has a value of $70 million
Maynes Corporation is currently all equity financed and has a value of $70 million
Subject:FinancePrice: Bought3
Maynes Corporation is currently all equity financed and has a value of $70 million. Investors currently require a return of 19.8 percent on common stock. Maynes has a marginal tax rate of 35 percent. Maynes plans to issue $25 million of debt with a return of 3.3 percent and use the proceeds to repurchase common stock. What will be the value of the firm after the debt issue? Please state your answer in millions rounded to two decimal places. Enter your response below. Number million
Rozanski Co. currently has EBIT of $31,000 and is all equity financed. EBIT are expected to grow at a rate of 3% per year. The firm pays corporate taxes equal to 21% of taxable income. The cost of equity for this firm is 17%. What is the market value of the firm? Enter your answer rounded to two decimal places. Number
