A firm has a tax rate of 35 an unlevered rate of return of


1. A firm is worth $1.500, has a 35% tax rate, total debt of $600, an unlevered return of 15%, and a cost of debt of 6.5%. What is the cost of equity?

2. A firm has a tax rate of 35%, an unlevered rate of return of 12%, total debt of $2,000, and an EBIT of $150.00. What is the unlevered value of the firm?

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Financial Management: A firm has a tax rate of 35 an unlevered rate of return of
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