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Q.14 Suppose you borrowed $15,000 at a rate of 12.0% and must repay it in 5 equal installments at the end of each of the
Q.14 Suppose you borrowed $15,000 at a rate of 12.0% and must repay it in 5 equal installments at the end of each of the next 5 years. How much interest would you have to pay in the second year?
Q15, An all-equity financed firm has $500 in assets and the stock price is $25. If the firm restructures with 15 percent debt which creates interest expense of $42 per year and the firm's tax rate is 22 percent, what is the break-even EBIT?
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