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Farmington Company can borrow at 7 . 0 5 percent. The company currently has no debt and the cost of equity is 1 1 .
Farmington Company can borrow at percent. The company currently has no debt and the cost of equity is percent. The current value of the firm is $ The corporate tax rate is percent. What will the value be if the company borrows $ and uses the proceeds to repurchase shares?
Farmington Company can borrow at percent. The company currently has no debt and the cost of equity is percent. The current value of the firm is $ The corporate tax rate is percent. What will the value be if the company borrows $ and uses the proceeds to repurchase shares?
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