McGraw-Hill Education Campus X m/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%2 3s://eis-prod.ec... https://eis-prod.ec.... Saved ght Publishing Company (OPC) has $4.5 million in excess cash. The firm pla 5 cash either to retire all of its outstanding debt or to repurchase equity. The held by one institution that is willing to sell it back to OPC for $4.5 million ion will not charge OPC any transaction costs. Once OPC becomes an all-E will remain unlevered forever. If OPC does not retire the debt, the compan e $4.5 million in cash to buy back some of its stock on the open ma chasing stock also has no transaction costs. The company will gen 2.000 of annual earnings before interest and taxes in perpetuity regardless I structure. The firm immediately pays out all earnings as dividends at the e year. OPC is subject to a corporate tax rate of 25 percent and the required ra n on the firm's unlevered equity is 15 percent. The personal tax rate on inte he is 37 percent and there are no taxes on equity distribution. Assume there ar ruptcy costs. hat is the value of OPC if it chooses to retire all of its debt and become levered firm? (Do not round intermediate calculations and enter your answe ollars, not millions of dollars, rounded to the nearest whole number, 234,567.) What is the value of OPC if it decides to repurchase stock instead of retiring its des Hint Use the equation for the value of a levered firm with personal tax on interest ncome from Problem 9 in the textbook.) (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest vhole number, e.g. 1,234,567.) What is the value of OPC if the expected bankruptcy costs have a present value of 5975,000? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g.. Prey 1 of 1 Next McGraw-Hill Education Campus X m/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%2 3s://eis-prod.ec... https://eis-prod.ec.... Saved ght Publishing Company (OPC) has $4.5 million in excess cash. The firm pla 5 cash either to retire all of its outstanding debt or to repurchase equity. The held by one institution that is willing to sell it back to OPC for $4.5 million ion will not charge OPC any transaction costs. Once OPC becomes an all-E will remain unlevered forever. If OPC does not retire the debt, the compan e $4.5 million in cash to buy back some of its stock on the open ma chasing stock also has no transaction costs. The company will gen 2.000 of annual earnings before interest and taxes in perpetuity regardless I structure. The firm immediately pays out all earnings as dividends at the e year. OPC is subject to a corporate tax rate of 25 percent and the required ra n on the firm's unlevered equity is 15 percent. The personal tax rate on inte he is 37 percent and there are no taxes on equity distribution. Assume there ar ruptcy costs. hat is the value of OPC if it chooses to retire all of its debt and become levered firm? (Do not round intermediate calculations and enter your answe ollars, not millions of dollars, rounded to the nearest whole number, 234,567.) What is the value of OPC if it decides to repurchase stock instead of retiring its des Hint Use the equation for the value of a levered firm with personal tax on interest ncome from Problem 9 in the textbook.) (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest vhole number, e.g. 1,234,567.) What is the value of OPC if the expected bankruptcy costs have a present value of 5975,000? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g.. Prey 1 of 1 Next