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Suppose the corporate tax rate is 21%. Consider af ane 1.600 balorean tasach year with the factoren met een The risk-free interest rate is on

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Suppose the corporate tax rate is 21%. Consider af ane 1.600 balorean tasach year with the factoren met een The risk-free interest rate is on Suppose the firm has no debt and pays out its net income as a dividend each year, What is the value of the footy 1. Suppose instead the firm makes interest payments of 5700 per year. What is the value of equiry? What is the value ofer? c. What is the difference between the total value of the firm with everage and without everage? d. The difference in (c) is equal to what percentage of the value of the debt

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