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Suppose the corpore.Com Sinemings before rest and techy with the capital depresent will be charge networking capital Thesis a. Suppose the findend pays come added

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Suppose the corpore.Com Sinemings before rest and techy with the capital depresent will be charge networking capital Thesis a. Suppose the findend pays come added ch ya What is the value of them To the immer 5500 per year whether of what is the value 6. What the free time and we? d. To where of the wall Suomen und schw What they Whemsecond the firs21000 Renard Suppose the corporate tax rate is 30%. Consider a firm that earns $1,500 in earnings before interest and taxes each year with no risk. The firm's capital expenditures equal its depreciation expenses each year, and it will have no changes to its net working capital. The risk-free interest rate is 5%. a. Suppose the firm has no debt and pays out its net income as a dividend each year. What is the value of the firm's equity? b. Suppose instead the firm makes interest payments of $500 per year. What is the value of equity? What is the value of debt? c. What is the difference between the total value of the firm with leverage and without leverage? d. To what percentage of the value of the debt is the difference in part (e) equal? a. Suppose the firm has no debt and pays out its net income as a dividend each year. What is the value of the firm's equity? If the firm has no debt and pays out its net income as a dividend each year, the value of the firm's equity is $ 21000 (Round to the nearest dollar) b. Suppose instead the firm makes interest payments of $500 per year. What is the value of equity? What is the value of debt? If the firm makes interest payments of $500 per year, the value of equity is S. (Round to the nearest dollar)

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