Farmington Co. can borrow at 6.3 percent. The company currently has no debt, and the cost of
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Farmington Co. can borrow at 6.3 percent. The company currently has no debt, and the cost of equity is 12.9 percent. The current value of the firm is $685,000. What will the value be if the company borrows $310,000 and uses the proceeds to repurchase shares? The corporate tax rate is 21 percent.
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Related Book For
Essentials Of Corporate Finance
ISBN: 9781265414962
11th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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