The main firm is a zero growth firm with an expected ebit


The main firm is a zero growth firm with an expected EBIT of $100,000 and a corporate tax rate of 30%. Main uses $500000 of 12.0% debt, and the cost of equity to an unlevered firm in the same risk class is 16.0%. What is Main's cost of equit?

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Finance Basics: The main firm is a zero growth firm with an expected ebit
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