Question: 14. Byrd Enterprises has no debt. Its current total value is $53 million. Ignoring taxes, what will the companys value be if it sells $16.2

14. Byrd Enterprises has no debt. Its current total value is $53 million. Ignoring taxes, what will the companys value be if it sells $16.2 million in debt? Suppose now that the companys tax rate is 23 percent. What will its overall value be if it sells $16.2 million in debt? Assume debt proceeds are used to repurchase equity.

15. M&M In Problem 14, what is the debt-equity ratio in both cases?

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