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BV Balance Sheet.xls darr The firm faces a 3 0 % flat tax rate. There is no debt in the current liabilities. The firm has
BV Balance Sheet.xls darr The firm faces a flat tax rate. There is no debt in the current liabilities. The firm has shares outstanding, which have a current market price of $ per share. You wish to determine the marketvalue of the firms capital assets. Assume that the market values of the current assets, current liabilities and longterm debt are equal to their bookvalue. Also, assume that the nondebt longterm liabilities have no market value. Remember to consider the value of the tax shield based on the assumptions of the Modigliani and Miller relationship. What is the marketvalue of the firms capital assets?
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