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The Koke Company has a policy of not paying dividends, and its bank requires that it always keep a compensating balance of 16% of its
The Koke Company has a policy of not paying dividends, and its bank requires that it always keep a compensating balance of 16% of its debt (D) in cash. Koke's corporate tax rate is 35%, and its cost of debt is 9% p.a. Calculate the missing information in this year's pro forma balance sheet and partial pro forma income statement (shown below), and then write in the answer box the value for the amount of debt (D) in the balance sheet. Give the answer with a 2-decimal accuracy; that is, it must be accurate to the penny. As always, do not write the $ symbol
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