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ate is 6%. a. Suppose the firm has no debt and pays out its net income as a dividend each year. What is the value

image text in transcribed ate is 6%. a. Suppose the firm has no debt and pays out its net income as a dividend each year. What is the value of the firm's equity? o. Suppose instead the firm makes interest payments of $900.00 per year. What is the value of equity? What is the value of debt? What is the difference between the total value of the firm with leverage and without leverage? d. The difference in (c) is equal to what percentage of the value of the debt? ate is 6%. a. Suppose the firm has no debt and pays out its net income as a dividend each year. What is the value of the firm's equity? o. Suppose instead the firm makes interest payments of $900.00 per year. What is the value of equity? What is the value of debt? What is the difference between the total value of the firm with leverage and without leverage? d. The difference in (c) is equal to what percentage of the value of the debt

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