Question: Dollar General (DG) is choosing between financing itself with only equity or with debt and equity. Regardless of how it finances itself, the EBIT for
Dollar General (DG) is choosing between financing itself with only equity or with debt and equity. Regardless of how it finances itself, the EBIT for DG will be $626 million. If DG does use debt, the interest expense will be $50 million. If DGs corporate tax rate is 0.23, how much will DG pay (in millions) in total to ALL investors if it uses both debt and equity?
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