If a company has a capital structure of 20 debt 80 equity


If a company has a capital structure of 20% debt 80% equity. The D/E ratio of .25. The risk free rate of 6%. The market risk premium is 5%. Tax rate is 40%. Assume 0 growth and EBIT of $5,000,000. What is the free cash flow? What is the optimal capital structure.

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: If a company has a capital structure of 20 debt 80 equity
Reference No:- TGS0630294

Expected delivery within 24 Hours