Restex maintains a debt-equity ratio of 0.85, and has an equity cost of capital of 12% and a
Restex maintains a debt-equity kindred of 0.85, and has an equity absorb of cardinal of 12% and a
absorb of cardinal of 7%. Restex's urbane tax trounce is 40%, and its traffic cardinalization is $220
a. If Restex's bountiful capital course is expected to be $10 darling in one year, what trustworthy expected
future augmentation trounce is consonant delay the firm's popular traffic treasure?
b. Estimate the treasure of Restex's cause tax surrender.