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Question 6 of 17 > >> Question 6 5 points Save Answer Linkcomn expects an Earnings before Taxes of 750000$ every year. The firm currently
Question 6 of 17 > >> Question 6 5 points Save Answer Linkcomn expects an Earnings before Taxes of 750000$ every year. The firm currently has 100% Equity and cost of raising equity is 15%. 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 20% (Must show the steps of calculation) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Arial 10pt A 2 V I E X X V 3883 (0) >
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