Question: Answer Question 47 (1 point) Listen B An outstandingly successful company is all-equity financed with a value of $213 million. The personal income tax rate
Answer Question 47 (1 point) Listen B An outstandingly successful company is all-equity financed with a value of $213 million. The personal income tax rate on interest is 45%, and the personal income tax rate on equity is 14%. The corporate tax rate is 33%. What would be the total value of the company if the leverage was increased to include $121 million of perpetual debt financing? Currently, the potential value lost Tue to shirking and perquisites is $20 million; these would drop to $5 million under the new structure. Expected costs of financial distress would rise from $0 to $10 million. Indicate your answer in millions and round to two decimal places. Do not put '$' in your response. Your Answer: Answer Question 48 (1 point)
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