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Section A Afirm faces a 21 percent tax rate and has szoom in assets, currently financed entirely with equity. I quity is worth $100 per
Section A Afirm faces a 21 percent tax rate and has szoom in assets, currently financed entirely with equity. I quity is worth $100 per share, and honk value of equity is equal to market value of enuity. Als, ler's assume that the firm's expected Bil is $700m. The firm is considering switching to a 45 percent deht capital structure, and has determined that they would have to pay a 10 percent yield on perpetual debt. Ilow much will No change if they switch to the proposed capital structure? (Give your dresser in decimal numbe, Molpeiler age and loG decimal plates.cg.0123456)
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