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Author Question: Klearcut Forestry Inc. generates perpetual annual EBIT of $100 million. Assume that the EBIT, and ... (Read 67 times)

craiczarry

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on: Apr 25, 2021
Klearcut Forestry Inc. generates perpetual annual EBIT of $100 million. Assume that the EBIT, and all other cash flows, occur at year end and that we are currently at the beginning of a year. Assume that all of the perfect market M&M assumptions hold and that the corporate tax rate is 35%. The CFO of Klearcut is trying to determine the company's optimal capital structure. Which of the debt-to-equity ratios listed below will maximize Klearcut's value?
◦ D/E = 0.5
◦ D/E = 1.0
◦ D/E = 1.5
◦ D/E = 2.0
◦ D/E = 2.5
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Marked as best answer by craiczarry on Apr 25, 2021

firehawk60

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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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craiczarry

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Reply 2 on: Apr 25, 2021
Excellent

bitingbit

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

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