14-5 Async Inc. and Sync Corp. both have the same EBIT of $5 million and tax rate of 35%. Async is all-equity financed with a cost of capital of 13%, whereas Sync has debt of $8 million. What is...

14-5

Async Inc. and Sync Corp. both have the same EBIT of $5 million and tax rate of 35%. Async is all-equity financed with a cost of capital of 13%, whereas Sync has debt of $8 million. What is Sync’s firm value using the M&M Proposition?

Select one:

a. $15,250,000

b. $17,500,000

c. $19,750,000

d. $25,000,000

e. $27,800,000

Jun 07, 2022

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14-5 Async Inc. and Sync Corp. both have the same EBIT of $5 million and tax rate of 35%. Async is all-equity financed with a cost of capital of 13%, whereas Sync has debt of $8 million. What is...

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