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Explain the tax benefits of debt financing. Calculate the AT - WACC with a 5 0 % debt and 5 0 % equity financing structure.
Explain the tax benefits of debt financing.
Calculate the ATWACC with a debt and equity financing structure.
Apply the calculated ATWACC to explain why this is or is not a viable investment for you as the angel investor.
Explain a financial restructuring ATWACC given changes to proportions of percent debt versus percent equity financing that would create a positive ROI.
Explain why you, as the angel investor, would require more or less debt versus equity financing. Be sure to note the role of the Unified Commercial CodeUCC document in this transaction and the order of claim on assets in times of bankruptcy.
Include a strong thesis statement, introduction, and conclusion. The main points of the response should be developed and explained clearly with appropriate financial and accounting terminology.
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