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Dooda Mfg. has just changed its capital structure from D=$497,000 to D = $208,000. Before the change, the market value of Dooda's equity was $645,000.
Dooda Mfg. has just changed its capital structure from D=$497,000 to D = $208,000. Before the change, the market value of Dooda's equity was $645,000. Assuming MM 1963 holds, find the market value of Dooda's equity now that the company has changed its debt. The corporate tax rate is 35% and there are no personal taxes. Give the answer as a dollar amount with no decimals; e.g., if you believe the answer is $456,789.55 then write your answer as 456790 (Acceptable error = $500)
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