Consider a firm with the following parameters. What is the total PV of this firm, including the
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Question:
Consider a firm with the following parameters. What is the total PV of this firm, including the loan?
Given:
Physical Lifespan (yrs) | 4 |
Capital Expense, year 0 | $ 14,000 |
EBITDA/Yr | $ 4,000 |
Overall Firm Cost of Capital | 9.4% |
Tax Rate | 39.0% |
Loan | $ 13,000 |
Interest Payments | $ 755 |
Depreciation Project Life (yrs) | 6 |
Related Book For
Corporate Finance
ISBN: 978-0077861759
10th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
Posted Date: