The zercon company has ebit of 50000 and market value debt, Ask an Expert

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The Zercon Company has EBIT of $50,000 and market value debt of $100,000 outstanding with a 9% coupon rate. The cost of equity for an all equity firm would be 14%. Zercon has a 35% corporate tax rate. Investors face a 20% tax rate on debt receipts and a 15% rate on equity. Determine the value of Zercon.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92420039

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