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Bird Enterprises has no debt. Its current total value is $48.4 million. Assume the company sells $19.1 million in debt. a. Ignoring taxes, what is
| Bird Enterprises has no debt. Its current total value is $48.4 million. Assume the company sells $19.1 million in debt. | |
| a. | Ignoring taxes, what is the debt-equity ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| b. | Assume the companys tax rate is 22 percent. What is the debt-equity ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
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Term Structure Models A Graduate Course
Authors: Damir Filipovic
2009th Edition
364226915X, 978-3642269158
