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How much will a firm need in cash flow before tax and intrest to satisfy debtholders and equityholders if the tax rate is 40%, there

How much will a firm need in cash flow before tax and intrest to satisfy debtholders and equityholders if the tax rate is 40%, there is $10 million in common stock requiring a 12% return, and $6 million in bonds requiring an 8% return? A. $1,392,000 B. $1,488,000 C. $2,480,000 D. $2,800,000

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