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solve with showing the steps of calculation Linkcomn expects an Earnings before Taxes of 75000$ every year The firm currently has 100% Equity and cost
solve with showing the steps of calculation
Linkcomn expects an Earnings before Taxes of 75000$ every year The firm currently has 100% Equity and cost of raising equity is 12% If the company can borow 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 severed value? Assume the company's tax rate is 25% (Must show the steps of calculation) Step by Step Solution
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