Non-marketable claims Hominy's debt has a face value of S215 million. If the company had raised capital
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Non-marketable claims Hominy's debt has a face value of S215 million. If the company had raised capital solely from its net equity capital, its value would have been S11.4 million. The company also issued 195,000 shares and is selling at 547 per share. Corporate tax is 21 per cent. How much will the expected bankruptcy cost reduce the value of a company?
Related Book For
Intermediate Financial Management
ISBN: 9780357516669
14th Edition
Authors: Eugene F Brigham, Phillip R Daves
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