Here is Establishment Industries? market-value balance sheet (Figures in m
Here is Establishment Industries? market-value balance sheet (Figures in millions):
Net working capital
Value of firm
The debt is yielding 6.1%, and the cost of equity is 14.9%. The tax rate is 35%. Investors expect this level of debt to be permanent.
What is Establishment?s WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
How would the market-value balance sheet change if Establishment retired all its debt? (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your answers to 1 decimal place.)
New Market-Value Balance Sheet (figures in millions)