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Barclay Corp is operating in a country K where the corporate tax is 30%, personal income tax on bond investment is 25% while the personal
- Barclay Corp is operating in a country K where the corporate tax is 30%, personal income tax on bond investment is 25% while the personal tax on stock is 29%. Assume the firms earnings before interest and taxes is $2,400,000 and cost of equity with zero debt is 8%.
- If Barclay current has $8 million total market value of debt financing, what would be the market value of the company of Barclay Corp in this country K?
- If Barclay current has $8 million total market value of debt financing, what would be the market value of the company of Barclay Corp in this country K?
- What is the proportion of debt (wd) and equity (ws) financing for Barclay Corp with financial leverage?
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Fundamentals of corporate finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
10th edition
978-1260013955, 78034639, 978-0078034633
