Tatum can borrow at 6.75 percent. The company currently has no debt and the cost of equity
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- Tatum can borrow at 6.75 percent. The company currently has no debt and the cost of equity is 11.15 percent. The current value of the firm is $630,000. The corporate tax rate is 22 percent. What will the value be if the company borrows $345,000 and uses the proceeds to repurchase shares? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.
Related Book For
Corporate Finance
ISBN: 9781265533199
13th International Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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