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Spaints Linkcomn expects an Eamings before Taxes of 750000$ every year. The firm ourendy has 100% Equity and cost of raising equity is 15% if

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Spaints Linkcomn expects an Eamings before Taxes of 750000$ every year. The firm ourendy 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 the company takes on a debit 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-EN-F10 (Mac) BIVS Paragraph Arial 10pt 2 I. XOQ www F !!! points Save 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 debit 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 debit 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 (Mad BIUS www Paragraph Arial 10pt E 2 I a x0 TREE

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