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Business, 17.12.2019 20:31 lidi92

Cavo corporation expects an ebit of $33,000 every year forever. the company currently has no debt, and its cost of equity is 16%. the corporate tax rate is 35%.a. what is the current value of the company? b-1. suppose the company can borrow at 10%. what will the value of the company be if it takes on debt equal to 60% of its unlevered value? b-2. suppose the company can borrow at 10%. what will the value of the company be if it takes on debt equal to 100% of its unlevered value? c-1. suppose the company can borrow at 10%. what will the value of the company be if it takes on debt equal to 60% of its levered value? c-2. suppose the company can borrow at 10%. what will the value of the company be if it takes on debt equal to 100% of its levered value?

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Cavo corporation expects an ebit of $33,000 every year forever. the company currently has no debt, a...
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