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Thrice Corp. uses no debt. The weighted average cost of capital is 8.4 percent. If the current market value of the equity is $16.3 million and there are no taxes, what is EBIT

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abiolataiwo2015

Answer:

$1,369,200

Explanation:

Calculation for EBIT

Using this formula

Value of Equity= EBIT / WACC

Let plug in the formula

$16,300,000 = EBIT / .084

EBIT = .084($16,300,000)

EBIT = $1,369,200

Therefore EBIT is $1,369,200

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