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e scroll wheel to zoom. Go to settings to change what the scroll wheel does. Go to Settings Suppose there are no taxes Finn ABC

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e scroll wheel to zoom. Go to settings to change what the scroll wheel does. Go to Settings Suppose there are no taxes Finn ABC has no debt, and firm XYZ has debt that generate free cash flows of $900 or $1,300 each year a. In the table below, fill in the debt payments b Suppose you hold 10% of the equity of ABC What is another portfolio you could hold that would provide the same cash flows? c. Suppose you hold 10% of the equa ty of XYZ If you can borrow at 13%, what is an alternative strategy that would provide the same cash nows? of $3,000 on which it pays interest of 13% each year Both companies have identical propos . After paying any interest on debt, both companies use all remaining free cash flows to pay dividends each year and irm will r ABC YZ FCF $900 $1,300 Debt Payments Equity Dividends Debt Payments Equity Dividends

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