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Farmington Company can borrow at 7 . 2 percent. The company currently has no debt and the cost of equity is 1 1 . 6
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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