PLI, Inc. has a Debt to Equity Ratio of 3:1. After tax cost of debt is 5% while cost of equity is 10%. The Board of Directors of the company decided to sell 100% of the company for Php 1 Billion.   Compute for the projected monthly average earnings assuming an EVA of Php 57,500,000. ANSWER: 10,000,000   provide the solution please

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter13: Capital Structure Concepts
Section: Chapter Questions
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SPLI, Inc. has a Debt to Equity Ratio of 3:1. After tax cost of debt is 5% while cost of equity is 10%. The Board of Directors of the company decided to sell 100% of the company for Php 1 Billion.

 

Compute for the projected monthly average earnings assuming an EVA of Php 57,500,000.

ANSWER: 10,000,000

 

provide the solution please

 

 

 

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