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What is the answer to this question? thank you in advance Kyra Ltd. is finance solely with equity. The company considers to obtain a loan
What is the answer to this question? thank you in advance
Kyra Ltd. is finance solely with equity. The company considers to obtain a loan of 1,000,000 from a local bank against an interest rate of 8%. This loan will be repaid in 2 years with equal amounts per year. The current corporate tax rate is 35%. Calculate based on the Modigliani & Miller's proposition 1 with taxes what the added value of the company will be after the announcement of the acceptance of the loan. (Round your answer to a round number with no decimals.) O 37,929 O 108,368 O 111,111 O 38,889Step by Step Solution
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