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Consider Mr. Pink's Inc., whose expected before tax income is $2,350,000 Mr. Pink's is currently unlevered and is valued at $16,500,000; The current corporate tax
Consider Mr. Pink's Inc., whose expected before tax income is $2,350,000 Mr. Pink's is currently unlevered and is valued at $16,500,000; The current corporate tax rate is .20. What is rsu? What is ra if Mr. Pink's debt to value ratio were 0.35 instead of zero? What is the value of this levered firm?
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