a. Assume a one year investment of $10,000 returns $10,900 at time 1. What is the return

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a. Assume a one year investment of $10,000 returns $10,900 at time 1.

What is the return on $1,000 of equity if $9,000 of .05 debt is used? Assume zero taxes.

b. What is the IRR (after tax) on $1,000 of equity if the firm earns

$12,000 before tax? The tax rate is .35.

With no debt, what is the IRR on equity?

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Private Equity Transforming Public Stock To Create Value

ISBN: 9780471392927

1st Edition

Authors: Harold Bierman

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Question Posted: Jun 07, 2024 01:12 AM

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a. Assume a one year investment of $10,000 returns $10,900 at time 1. What is the return

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Private Equity Transforming Public Stock To Create Value

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