Question: Roxy Broadcasting in Problem 12 was originally an all-equity firm with a value of $25,000,000. Roxy now pays taxes at a 40% rate. What is

Roxy Broadcasting in Problem 12 was originally an all-equity firm with a value of $25,000,000. Roxy now pays taxes at a 40% rate. What is the value of Roxy under the 1/3 debt to equity capital structure? Under the 3/1 capital structure?

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