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The typical merger premium is Multiple Choice 80-100% O 40% O 40-60% 0-20% Tobin's Barbeque has a bank loan at 8% interest and an after-tax

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The typical merger premium is Multiple Choice 80-100% O 40% O 40-60% 0-20% Tobin's Barbeque has a bank loan at 8% interest and an after-tax cost of debt of 6%. What will the after-tax cost of debt be if a new loan is taken out yielding 11%. Multiple Choice 7.52% 13.33% O O None of these options are true. 8.25% O How would the salvage value be treated in a net present value calculation? Multiple Choice As a negative cash flow in the first year that the asset is used As a negative cash flow in the final year that the asset is used As a positive cash flow in the final year that the asset is used Disregard the salvage

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