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Question 1 of 17 & Moving to another question will save this response. Question 1 5 points Save Answer Linkcomn expects an Earnings before Taxes

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Question 1 of 17 & Moving to another question will save this response. Question 1 5 points Save Answer Linkcomn expects an Earnings before Taxes of 750005 every year. The firm currently has 100% Equity and cost of raising equity is 10%. If the company can borrow 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 its levered value? Assume the company's tax rate is 25% (Must show the steps of calculation) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac) BIVS V Arial V Paragraph 10pt EYEY Av IXO 952 Question 1 of 17 & Moving to another question will save this response. Question 1 5 points Save Answer Linkcomn expects an Earnings before Taxes of 750005 every year. The firm currently has 100% Equity and cost of raising equity is 10%. If the company can borrow 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 its levered value? Assume the company's tax rate is 25% (Must show the steps of calculation) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac) BIVS V Arial V Paragraph 10pt EYEY Av IXO 952

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