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Ski and Board are two identical firms of identical size operating in identical markets. Ski is unlevered with assets valued at $ 1 5 0

Ski and Board are two identical firms of identical size operating in identical markets. Ski is unlevered with assets valued at $15000 and has 750 shares of stock outstanding. Board also has $15000 in assets and has $5000 in debt financed at an interest rate of 5.00% and has 500 shares of stock outstanding. Both Ski and Board pay tax at the rate of 30%.

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