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Creative Inc. is an un levered firm valued at $1,500,000. 000. The company wants to borrow $ 500,000 (Perpetual debt) and use the proceeds to
Creative Inc. is an un levered firm valued at $1,500,000. 000. The company wants to borrow $ 500,000 (Perpetual debt) and use the proceeds to repurchase shares. The cost of debt is 8% and the corporate tax rate is 40%. What will the value be the value of the Firm after the change in capital structure
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