Question
Afirmhas a current market value of INR250 crores. The current cost of equity is 15%and the tax rate is 20 percent. If the firm has
Afirmhas a current market value of INR250 crores. The current cost of equity is 15%and the tax rate is 20 percent. If the firm has announced to issue a perpetual debt of INR 50 crores at 6% interest rate to change the capital structure of the firm, what is the market value of the firm after this announcement?
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Financial And Managerial Accounting
Authors: Nonso E Okpala
1st Edition
1634873904, 9781634873901
