Question: Guerin Enterprises has no debt. Its current total value is $77.2 million. Requirement 1: Ignoring taxes, what will the company's overall value be if it

Guerin Enterprises has no debt. Its current total value is $77.2 million. Requirement 1: Ignoring taxes, what will the company's overall value be if it sells $35.6 million in debt and buys back equity with the proceeds? Requirement 2: Suppose now that the company's tax rate is 34 percent. Assume debt proceeds are used to repurchase equity. What will its overall value be if it sells $35.6 million in debt

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