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Author Question: Firm U has no debt, its shareholders require a return of 15%, and EBIT of $15,000 which is paid ... (Read 94 times)

ereecah

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on: Apr 25, 2021
Firm U has no debt, its shareholders require a return of 15%, and EBIT of $15,000 which is paid annually in perpetuity starting in one year. Firm L is identical except it is partially financed by $20,000 of perpetual bonds with an annual coupon of 10%. The tax rate is zero. What is the cost of equity for Firm L?
◦ 10.00%
◦ 15.00%
◦ 15.75%
◦ 16.25%
◦ 16.00%
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Marked as best answer by ereecah on Apr 25, 2021

fur

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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ereecah

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Reply 2 on: Apr 25, 2021
Excellent

Joy Chen

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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