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1.Now assume that the estimated terminal value growth rate is 15 percent, and the bank is only willing to loan the firm $20 million. Under

1.Now assume that the estimated terminal value growth rate is 15 percent, and the bank is only willing to loan the firm $20 million. Under these conditions, what percentage of common stock would you require to invest $35 million? Would Dr. Aplin be willing to sell you this percentage ownership of AFC?

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