Km company is currently an all-equity firm with 20 million shares outstanding ay 7.50 per share. Km is planning to borrow 50$ million and use
Km company is currently an all-equity firm with 20 million shares outstanding ay 7.50 per share. Km is planning to borrow 50$ million and use the fund to repurchase shares. the debt will be permanent. Km is subject to a 40% corporate tax rate. what is the firm value before and after the refinancing ?
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Authors: George H. Pink
6th Edition
1567939651, 978-1567939651
