Duke Inc. is considering to change its capital structure of a $ 1 million:$ 3 million debt

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Question:

Duke Inc. is considering to change its capital structure of a $

1

million:$

3

million debt

-

equity mix

(

in terms of market values

),

by taking out a $

3

million loan which is used to pay a large dividend to shareholders. The firm

s tax rate is

40 % .

After the dividend has been paid, what will be the firm

s total equity value?

Posted Date: May 10, 2024 01:22 AM

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Duke Inc. is considering to change its capital structure of a $ 1 million:$ 3 million debt

Question:

Expert Answer:

Okay lets break this down stepbystep Given information Initial capital stru... View the full answer

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