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Linkcomn expects an Earnings before Taxes of 7500005 every year. The firm currently has 100% Equity and cost of raising equity is 12%. If the

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Linkcomn expects an Earnings before Taxes of 7500005 every year. The firm currently has 100% Equity and cost of raising equity is 12%. If the company can torrow out with an interes of 10%. What will be the value of the company if the company takes on a debt equal to 60% of its levered value? What will be the value of the company if the company takes on a deb equal to 40% of its levered value? Assume the company's tax rate is 20% (Must show the steps of calculation) For the toolbar, press ALT+F10 (PC) or ALT FN-F10 (Mac). www BIVS Paragraph 5 Arial 10pt !!! W

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