Question: Use the in-class example below, change the face value of debt from $2400 to $5000, compute the NEW value of the firms debt. Equity Debt
Use the in-class example below, change the face value of debt from $2400 to $5000, compute the NEW value of the firms debt. Equity Debt Firm Cost 12.00% 10.00% 10.15% Face value $2,400.00 Tax rate 21.00% Weight 54.78% 45.22% Year FCFE FCFD FCFF 1 $200.00 $189.60 $389.60 2 $300.00 $189.60 $489.60 3 $350.00 $189.60 $539.60 4 $400.00 $189.60 $589.60 5 $500.00 $189.60 $689.60 5 $3,000.00 $2,400.00 $5,400.00 $2400 $3000 $5000 None of above
Use the in-class example below, change the face value of debt from $2400 to $5000, compute the NEW value of the firm's debt. $2400 $3000 $5000 None of above
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