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Bird Enterprises has no debt. Its current total value is $50.8 million. Assume debt proceeds are used to repurchase equity. a. Ignoring taxes, what will
Bird Enterprises has no debt. Its current total value is $50.8 million. Assume debt proceeds are used to repurchase equity.
| a. | Ignoring taxes, what will the companys value be if it sells $20.3 million in debt? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, round your answer to the nearest whole number, e.g., 1,234,567.) |
| b. | Suppose now that the companys tax rate is 24 percent. What will its overall value be if it sells $20.3 million in debt? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) |
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Finance And Security Global Vulnerabilities Threats And Responses
Authors: Martin S. Navias
1st Edition
1787381366, 978-1787381360
