Use the information for the question(s)below.
Consider two firms, With and Without, that have identical assets that generate identical cash flows. Without is an all-equity firm, with one million shares outstanding that trade for a price of $24 per share. With has two million shares outstanding and $12 million in debt at an interest rate of 5%.
-According to MM Proposition I, the stock price for With is closest to:
A)$24.00
B)$6.00
C)$12.00
D)$8.00

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The Answer of Use the information for the question(s)below.
Consider two firms, With and Without, that have identical assets that generate identical cash flows. Without is an all-equity firm, with one million shares outstanding that trade for a price of $24 per share. With has two million shares outstanding and $12 million in debt at an interest rate of 5%.
-According to MM Proposition I, the stock price for With is closest to:
A)$24.00
B)$6.00
C)$12.00
D)$8.00

Use the Information for the Question(s)below