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Bird Enterprises has no debt. Its current total value is $47.4 million. Assume debt proceeds are used to repurchase equity. a. Ignoring taxes, what will

Bird Enterprises has no debt. Its current total value is $47.4 million. Assume debt proceeds are used to repurchase equity.

a.Ignoring taxes, what will the company's value be if it sells $18.6 million in debt?

)b.Suppose now that the company's tax rate is 22 percent. What will its overall value be if it sells $18.6 million in debt?

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