Question: 520 Default Unit Assignment 11A-Graded Remaining Time 84 38 06 Brealey Corporation is currently all equity financed and has a value of $80 million Investors

520 Default Unit Assignment 11A-Graded Remaining Time 84 38 06 Brealey Corporation is currently all equity financed and has a value of $80 million Investors currently require a return of 17 30 percent on common stock Brealey pays no taxes Brealey plans to issue $25 million of debt with a return of 4 9 percent and use the proceeds to repurchase common stock What will be the value of the firm after the debt issue? Please state your answer in millions Enter your response below 80 Correct responses semillion Given that the firm will still have a value of $80 million what will be the value of the equity after the debt issue? Please state your answer in millions Enter your response below Number million Section Attempt 1 of 1 Verify Submit Assignment Quit & Save Question Menu . O RE ENG 11:22 AM 2020-07-2

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