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3 years ago

6

Scarlett Corp. uses no debt. The weighted average cost of capital is 8.4 percent. If the current market value of the equity is $

25 million and there are no taxes, what is EBIT?

1 answer:

prohojiy [21]3 years ago

5 0

Answer:

EBIT $2,100,000

Explanation:

WACC=EBIT/(V+D)

8.4%=EBIT/$25,000,000

EBIT=25,000,000*8.4%

EBIT=$2,100,000

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