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Gypco expects an EBIT of $ 1 0 , 0 0 0 every year forever. Gypco can borrow at 7 percent. Suppose Gypco currently has
Gypco expects an EBIT of $ every year forever. Gypco can borrow at percent. Suppose Gypco currently has no debt and its cost of equity is percent. If the corporate tax rate is percent, what is the value of the firm? What will the value be if Gypco borrows $ and uses the proceeds to repurchase stock? 
Gypco expects an EBIT of $ every year forever. Gypco can borrow at percent. Suppose Gypco currently has no debt and its cost of equity is percent. If the corporate tax rate is percent, what is the value of the firm? What will the value be if Gypco borrows $ and uses the proceeds to repurchase stock?
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International Finance Theory And Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J Melitz,
11th Edition
013451954X, 9780134519548
