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points Linkcomn expects an Earnings before Taxes of 7500005 every year. The firm currently has 100% Equity and cost of raising equity is 12% If
points 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 bonow debt with an interest 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 debt equal to 40% of severed value? Assume the company's tax rate is 35% (Must show the steps of calculation) For the toolbar, press ALTTF1RIPCIO ALTAN 5 points Lacan expects an Earings before Taxes of 250000s every year. The fm currently has 100% Equity and cost of raining equity is 12% f the company can borrow dett with an interest 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 debt equal to 40% of its levered value? Assume the company's fax rate in 35% (Must show the steps of calculation) For the toolbar, press ALT+F10 (PC) or ALTHEN+F19
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