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Question 17 TIPS IN value of the company they % Linkcomn expects an Earnings before Taxes of 7500005 every year. The firm cuently has 100%

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Question 17 TIPS IN value of the company they % Linkcomn expects an Earnings before Taxes of 7500005 every year. The firm cuently has 100% Equity and cost of raising aus d will be the value of the company if the company takes on a debt equal to 50% of its levered value? What wil value? Assume the company's tax rate is 40% (Must show the steps of calculation) stion 13 an Eames betons Taxes of 750005 every year. The fem currently has 100% Equity and cost of raising eqaty is 10% If the company can borrow debt with an et of 10% What witte f company the company takes on a debt equal to 50% of its levered walue? What will be the value of the company of the company takes on a debt equal to 40% of es wervered value Assume the company of calculatio ALTERNAT

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