What is the total market value of firm

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The market value of equity for firm L is $250,000. Firm L has significant operations in England, in Europe, and in Japan and as a result has debts from each of those countries in the amount of £10,000, €20,000, and ¥10,000,000. In addition, firm L owes $80,000 to U.S. bondholders. The cost of equity for firm L is 13.0%. The aggregate cost of debt for firm L is 7.6% before taxes. The marginal tax rate for firm L is 40%. Current spot rates are $1.50/£, $1.30/€, and ¥95/$.

In dollars, given current spot rates, how much debt does firm L have?

In dollars, given current spot rates, what is the total market value of firm L?

To two decimals, what is the weighted average cost of capital (WACC) for firm L?

Reference no: EM132056795

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