(Solution) - a Referring to Table 13 3 calculate the market value of -(2025 Original AI-Free Solution)

Paper Details

a. Referring to Table 13.3, calculate the market value of firm L (with a corporate income tax) if the equity amount in its capital structure decreases to $3,000 and the debt amount increases to $3,000.
b. For firm L (with equity = $3,000 and debt = $3,000), calculate (i) the income available to the stockholders and (ii) the cost ofequity.