Question
Maynes Corporation is currently all equity financed and has a value of $95 million. Investors currently require a return of 16.50 percent on common
Maynes Corporation is currently all equity financed and has a value of $95 million. Investors currently require a return of 16.50 percent on common stock. Maynes pays no taxes. Maynes plans to issue $45 million of debt with a return of 3.9 percent and use the proceeds to repurchase common stock. What will be the value of the firm after the debt issue? Please state your answer in millions. Enter your response below. Number million
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
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