Suppose Markrum has a market value of equity of $250 million and a debt of value $250

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Suppose Markrum has a market value of equity of $250 million and a debt of value $250 million. The firm plans to implement a project with an initial investment of $50 million and a NPV of $10 million.

How much debt (in million dollars) should it take to maintain the same D:V ratio if it plans to announce the project prior to raising capital?

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Behavioral Corporate Finance Concepts And Cases For Teaching Behavioral Finance

ISBN: 9781259277207

2nd Edition

Authors: Hersh Shefrin

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Posted Date: May 05, 2023 07:53 AM

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Suppose Markrum has a market value of equity of $250 million and a debt of value $250

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Behavioral Corporate Finance Concepts And Cases For Teaching Behavioral Finance

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