The EBIT of the unlevered company is OMR 8,000; value of unlevered company (Vu) is OMR 80,000 and the corporate tax rate is 30%, then what is unlevered cost of equity (Unlevered Ke) under Modigliani-Miller Model? a. 33.33% b. 7% c. 8.33% d. 25% Clear my choice
The EBIT of the unlevered company is OMR 8,000; value of unlevered company (Vu) is OMR 80,000 and the corporate tax rate is 30%, then what is unlevered cost of equity (Unlevered Ke) under Modigliani-Miller Model? a. 33.33% b. 7% c. 8.33% d. 25% Clear my choice
Chapter13: Capital Structure Concepts
Section: Chapter Questions
Problem 2P
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36-The EBIT of the unlevered company is OMR 8,000; value of unlevered company (Vu) is OMR 80,000 and the corporate tax rate is 30%, then what is unlevered cost of equity (Unlevered Ke) under Modigliani-Miller Model?
a.
33.33%
b.
7%
c.
8.33%
d.
25%
Clear my choice
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