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Southern Wind is an all - equity firm with 2 2 , 1 0 0 shares of stock outstanding and a total market value of
Southern Wind is an allequity firm with shares of stock outstanding and a total market value of $ Based on its current capital structure, the firm is expected to have earnings before interest and taxes of $ if the economy is normal, $ if the economy is in a recession, and $ if the economy booms. Ignore taxes, Management is considering issuing $ of debt with an interest rate of percent. If the firm issues the debt, the proceeds will be
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