Question
value of company equity = 720,000 total value=126857.15 cost of debt = 400,000 with 4 % in perpetuity tax rate= 30 % Calculate the new
value of company equity = 720,000 total value=126857.15 cost of debt = 400,000 with 4 % in perpetuity tax rate= 30 % Calculate the new cost of equity in the levered firm using the future dividends model of share valuation.
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Financial Management for Public, Health and Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
5th edition
1506326846, 9781506326863, 1506326862, 978-1506326849
