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Remaining Time: 1 hour, 55 minutes, 59 seconds. A Question Completion Status: 1 2 3 4 5 6 7 8 9 10 11 12 14 15 16 17 A Moving to another question will save this response. Question 15 of 17 >>>> Question 15 5 points Save Answer Linkcomn expects an Earnings before Taxes of 750000S every year. The firm currently has 100% Equity and cost of raising equity is 15%. If the company can borrow debt with an interest of 10%. What will be the value of the company if the company takes on a debt equal to 60% of its levered value? What will be the value of the company if the company takes on a debt equal to 40% of its levered value? Assume the company's tax rate is 30%. (Must show the steps of calculation) For the toolbar, press ALT+F10 (PC) or ALT-FN+F10 (Mac). BIUS Paragraph WWW Arial HOP 10pt A 500 I ABC X X V Ra KE M Activate Windo Go to Settings to ac 11 T +] 199 148 88Step by Step Solution
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