Your firm announces that you will issue $50 million in debt on top of the $100 million

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Your firm announces that you will issue $50 million in debt on top of the $100 million in debt you now have. Your stock (10 million shares) is trading at $20 a share. If this announcement was a surprise, and investors believe you and that the all-in relative tax advantage od debt is 10%, fill in the following table with the values you expect for each item:

	Now	After Announcement	After Execution
MV(Equity)
MV(Debt)
Number of Shares
Stock Price

Posted Date: Dec 24, 2021 02:01 AM

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Your firm announces that you will issue $50 million in debt on top of the $100 million

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MV Market Value Equity Number of Shares Share Price MVDebt Total outstanding debt Now Number of Shar... View the full answer

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