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Suppose the appropriate discount rate for Kohwe's future free cash flows is 9%, and the only capital market imperfections are corporate taxes and financial distress
Suppose the appropriate discount rate for Kohwe's future free cash flows is 9%, and the only capital market imperfections are corporate taxes and financial distress costs. a. What is the NPV of Kohwe's investment? b. What is Kohwe's share price today? year. c. What is Kohwe's share price today if the investment is financed with debt? d. What is Kohwe's share price today given the financial distress costs of leverage? a. What is the NPV of Kohwe's investment? The NPV is $ million. (Round to one decimal place.) b. What is Kohwe's share price today? The price today is: per share. (Round to the nearest cent.) year. c. What is Kohwe's share price today if the investment is financed with debt? Kohwe's share price today, if the investment is financed with debt, is: per share. (Round to the nearest cent.) d. What is Kohwe's share price today given the financial distress costs of leverage? Kohwe's share price today given the financial distress costs of leverage is per share. (Round to the nearest cent.)
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