(Answered) Kelly computers has ebit of 200000 a growth rate of 6

Accounting

Kelly Computers has EBIT of $200,000, a growth rate of 6 percent, and faces a tax rate of 40 percent. In order to support growth, Kelly much reinvest 20 percent of its EBIT in net operating assets. Kelly has $300,000 in 8 percent debt outstanding, and a similar company with no debt has cost of equity of 11 percent.

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