Question: please answer my question i have 20 min 5 points Question 11 Linkcomn expects an Earnings before Taxes of 7500005 every year. The fem currently

please answer my question i have 20 min
please answer my question i have 20 min 5 points Question 11

5 points Question 11 Linkcomn expects an Earnings before Taxes of 7500005 every year. The fem currently has 100% Equity and cost of raising equity is 12%. If the company can borrow debt with an interest of 10% What will be the value of the company if the company takes on a debt equal to 60% of its levered value? What will be the value of the company if the company takes on a debt equal to 40% of its levered value? Assume the company's tax rate is 35% (Must show the steps of calculation) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac) BIVS Paragraph V Arial 4 10pt M EY EY AV AV L X Q6 X X v EB 0 63 880 38 (0) + 85

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