Complete the table under the following scenarios: Corporation Tax (Tc) is equal to 0% Corporation Tax (Tc) is equal to 3
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Complete the table under the following scenarios: Corporation Tax (Tc) is equal to 0% Corporation Tax (Tc) is equal to 3
company with no debt against the returns of the market index.) Corporate Tax of 0% Beta of equity (Be) 1.2 Cost of debt (Rd) WACC Cost of Equity (Re) 0.102 0.03 0.102 Value of Debt (D) 0 200 400 600 800 Value of Equity (E) 1000 800 600 400 200 2 0.03 0.15 0.102 6 0.03 0.39 0.102 Corporate Tax of 30% Beta of equity (Be) Cost of debt (Rd) WACC Cost of Equity (Re) 0.102 1.2 0.03 0.102 Value of Debt (D) 0 200 400 600 800 Value of Equity (E) 1000 800 600 400 200 1.76 0.03 0.1356 0.0898 4.56 0.03 0.3036 0.0775
Complete the table under the following scenarios: Corporation Tax (Tc) is equal to 0% Corporation Tax (Tc) is equal to 30% You are given the following information: Risk-free rate (Rf) is 3% Expected return on the market (Rm) is 9% Assume Cost of debt is equal to the risk-free rate. Beta of Unlevered Equity (Ba) is 1.20 (It was calculated by comparing the returns of the