Using the previous data in Exercises 1 and 2 for Brewton Distillers and assuming a corporate tax
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Using the previous data in Exercises 1 and 2 for Brewton Distillers and assuming a corporate tax rate of 30 per cent, calculate: (1) the market value of the all-equity company, and (2) the market value of the geared company assuming £5m of equity can be replaced by an equal market value of debt.
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