Abc Drilling Has Debt With A Market Value Of 200 000 And A Yield Of 9 The Firm S

Abc drilling has debt with a market value of $200,000 and a yield of 9%. the firm’s equity has a market value of $300,000, its earnings are growing at a 5% rate, and its tax rate is 40%. a similar firm with no debt has a cost of equity of 12%. under the mm extension with growth, what would abc drilling’s total value be if it had no debt?

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