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SOLVED: Firm U is an all equity firm and has a market value of 100,000 and EBIT of300,000. Firm L has identical EBIT but it uses 40% debt in its capital structure.
SOLVED: Firm U is an all equity firm and has a market value of 100,000 and EBIT of300,000. Firm L has identical EBIT but it uses 40% debt in its capital structure.