Siracha company has currently has 10000000 in equity and 0


Siracha Company has currently has $10,000,000 in equity and $0 in debt. Their earnings before interest and taxes (EBIT) of $1,000,000. Siracha Company is considering a 20% debt ratio, and at this level, could acquire capital at 8% interest. The applicable tax rate is 40%. Find Siracha Company’s net income at a 20% debt level

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Siracha company has currently has 10000000 in equity and 0
Reference No:- TGS01416476

Expected delivery within 24 Hours