XYZ corporation has the following data available: Earnings
before interest and taxes of P850, 000; corporate income tax rate,
32%; cost of debt, 10%;cost of equity in the absence of borrowings,
15%. (Use the MM approach with corporate tax. Note: The answer in
letter a must be the same as the format in the given. If the answer
is a whole number, do not include decimals. If the answer requires
a decimal number, round off to the nearest hundredths.)

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Question: XYZ corporation has the following data available: Earnings before interest and taxes of P850, 000…
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a. Compute for the total market value of XYZ corp. with no
leverage. ___________

b. Compute for the total market value of the firm with P
1,000,000 debt.____________

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