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please long-term debt are equal to their book-value. Also, assume that the non-debt long-term liabilities have no market value. Remember to consider the value of
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long-term debt are equal to their book-value. Also, assume that the non-debt long-term liabilities have no market value. Remember to consider the value of the tax shield based on the assumptions of the 1963 Modigliani and Miller relationship. What is the market-value of the firm's capital assets? $83,500,000 $109,375,000 $148,225,000 $155,645,000 $133,945,000 to go back to the test.) BVBalanceSheet.xls The firm faces a 34% flat tax rate. There is no debt in the current liabilities. The firm has 1,750,000 shares outstanding, which have a current market price of $62.50 per share. You wish to determine the market-value of the firm's capital assets. Assume that the market values of the current assets, current liabilities and long-term debt are equal to their book-value. Also, assume that the non-debt long-term liabilities have no market value. Remember to consider the value of the tax shield based on the assumptions of the 1963 Modigliani and Miller relationship. What is the market-value of the firm's capital assets? $83,500,000 $109,375,000 $148,225,000 $155,645,000 $133,945,000Step by Step Solution
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