5 PTS Bogy Enterprises is an all-equity firm with aweighted average cost of capital of 10.25percent. The current market value of the equity is$32.8 million, and the tax rate is 30 percent.What is EBIT?a. $2,145,066.35b. $3,425,714.97c. $5,228,571.18d. $6,790,110.53e. $48,02,857.14

To calculate EBIT (Earnings Before Interest and Taxes), we use the following formula: EBIT= (WACC ×…

Answered: Bogy Enterprises is an all-equity firm…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter9: The Cost Of Capital

Section: Chapter Questions

Problem 7P

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Bogy Enterprises is an all-equity firm with a weighted average cost of capital of 10.25 percent. The current market value of the equity is $32.8 million, and the tax rate is 30 percent. What is EBIT? a. $2,145,066.35 b. $3,425,714.97 c. $5,228,571.18 d. $6,790,110.53 e. $48,02,857.14