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As an all-equity firm, Chesapeake Bay Foods has a cost of capital of 11.3 percent, a total firm value of $378,000, and a tax rate
As an all-equity firm, Chesapeake Bay Foods has a cost of capital of 11.3 percent, a total firm value of $378,000, and a tax rate of 33 percent. What would the firms total value be if it borrowed $51,000 at 8.1 percent interest? |
$394,830
$429,000
$361,170
$567,406
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