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CT Stores has debt with a book value of $325,000 and a market value of $319,000. The firm's equity has a book value of $526,000 and a market value of $684,000. The tax rate is 21 percent and the cost of capital is 11.2 percent. What is the market value of this firm based on MM Proposition I without taxes

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tanseershar

Answer:

$1,003,000

Explanation:

Market Value of firm=Market value of equity+ market value of debt

                                  =684,000+319,000

                                  =$1,003,000

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