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Gauss Inc. has 10,000 bonds outstanding and each bond is currently trading at its par value of $1,000. The company has 600,000 shares of stock
Gauss Inc. has 10,000 bonds outstanding and each bond is currently trading at its par value of $1,000. The company has 600,000 shares of stock outstanding that sell at a price of $25 per share. The corporate tax rate is 25%. The value of the firm if it were entirely finance by equity would be $23M.
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1 Calculate the total value of bonds and shares Total bonds outstanding10000 Bond price1000 Total bo...
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094
