Question: Three Piggies Enterprises has no debt. Its current total value is $53 million. Ignoring taxes, what will the company's value be if it sells $19.4

Three Piggies Enterprises has no debt. Its current total value is

$53 million. Ignoring taxes, what will the company's value be if it sells

$19.4 million in debt? Suppose now that the company's tax rate is

40 percent. What will its overall value be if it sells $19.4 million in

debt? Assume debt proceeds are used to repurchase equity.

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