Firm HIJ expects its EBIT to be 80,000 yuan every year forever. The firm can borrow at 7 percent. The firm currently has no debt, and its cost of equity is 12 percent. The tax rate is 35 percent. According to M&M Proposition I with taxes, what will the value be if the firm borrows 100,000 yuan and uses the proceeds to repurchase shares?
Firm HIJ expects its EBIT to be 80,000 yuan every year forever. The firm can borrow at 7 percent. The firm currently has no debt, and its cost of equity is 12 percent. The tax rate is 35 percent. According to M&M Proposition I with taxes, what will the value be if the firm borrows 100,000 yuan and uses the proceeds to repurchase shares?
发布时间：2024-09-27 14:00:42
