Maestro Frozen Foods expects to earn 365000
June 7th, 2024
Maestro Frozen Foods expects to earn 365000 in perpetuity before interest and taxes from its line of gourmet TV dinners. The Company has a debt to assets ratio of 40%. The cost of debt is 10%. If the company had no debt, its cost of capital would have been 15%. The firm’s tax rate is 30%. What is the value of the firm? The Value of its equity? The Required rate of return rate of return on equity. The weighted average cost of capital?