Question
6. A firm with no debt has 200,000 shares outstanding valued at $20 each. Its cost of equity is 12 percent. The firm is considering
6. A firm with no debt has 200,000 shares outstanding valued at $20 each. Its cost of equity is 12 percent. The firm is considering adding $1,000,000 in debt to its capital structure. The coupon rate would be 8 percent and the firm's tax rate is 34 percent. What would the firm be worth after adding the debt?
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Evaluating The Effectiveness On Internal Audit Departments
Authors: Dereje Ferede Asrat, Sewale Abate Ayalew
1st Edition
3659298387, 978-3659298387
