The U.S. government has settled a dispute with your company for $16 million. It is committed to

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The U.S. government has settled a dispute with your company for $16 million. It is committed to pay this amount in exactly 12 months. However, your company will have to pay tax on the award at a marginal tax rate of 35%. What is the award worth? The one-year Treasury rate is 5.5%.
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Principles of Corporate Finance

ISBN: 978-0078034763

11th edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen

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