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Business, 07.07.2021 01:00 gobbler80

A firm is currently unlevered with 1,000,000 shares each price at $50. The firm is debating of changing its capital structure by taking $20 million in debt that matures in 4 years and repurchasing shares. It will pay down this debt by $5 million every year. If the tax rate is 21% and cost of debt is 7.5%, what is the firm value of the restructured firm

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A firm is currently unlevered with 1,000,000 shares each price at $50. The firm is debating of chang...
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