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You are considering borrowing $1,000,000 at an interest rate of 6 percent for your pizza business. Your pizza business generates pretax cash flows of $300,000
You are considering borrowing $1,000,000 at an interest rate of 6 percent for your pizza business. Your pizza business generates pretax cash flows of $300,000 each year and pays taxes at a rate of 25 percent. Kcs=10% .What is the value of your firm without debt, and how much would debt increase its value? What is WACC before and after restructuring ?
please dont use MS Exel or hand wrighting
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