question archive ABC is an unlevered firm with EBIT of $12,700 per year forever
ABC is an unlevered firm with EBIT of $12,700 per year forever
Subject:FinancePrice: Bought3
ABC is an unlevered firm with EBIT of $12,700 per year forever. Its unlevered cost of equity is 11.1%. It plans to borrow $33,093 perpetual debt at 6.5% to buy back shares. If there is no corporate tax, what is the firm value after the recapitalization?
