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You are a corporate finance analyst at a management consulting firm, which has been approached by a company for advice on its capital structure decisions.
You are a corporate finance analyst at a management consulting firm, which has been approached by a company for advice on its capital structure decisions. The company, Boston Turkey Inc., has been in existence for only two years, and its stock is currently trading at $20 per share (There are 100,000 shares outstanding.) The following are the most recent financial statements of the company: The debt is not traded, but its estimated market value is 125% of face ( book) value. Due to its limited history, the beta of the stock cannot be estimated from past prices. You do have information about comparable listed firms and their bates
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