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A B 0 100 10 40 80 10 Value of Firm Debt Equity Earnings before interest Interest payment Interest rate Earnings after interest Return on

A B 0 100 10 40 80 10 Value of Firm Debt Equity Earnings before interest Interest payment Interest rate Earnings after interest Return on Equity Debt/Equity Ratio Cost of Capital Not Applicable 5% a. Reproduce the above table in your answer booklet filling the blank spaces. b. Consider an investor holding a stake y, O

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