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A company will generate forever a before-tax cash flow of $15. the corporate tax rate is 50%. the risk-free rate is 10%. Value the firm
A company will generate forever a before-tax cash flow of $15. the corporate tax rate is 50%. the risk-free rate is 10%.
- Value the firm if it is all-equity
- Value the firm if it issues a perpetual bond with coupon $5.
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Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
10th edition
77861671, 978-0077861674
