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Business, 18.06.2021 02:30 christopherluckey7

Tatum can borrow at 7.4 percent. The company currently has no debt and the cost of equity is 11.8 percent. The current value of the firm is $695,000. The corporate tax rate is 25 percent. What will the value be if the company borrows $410,000 and uses the proceeds to repurchase shares

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Tatum can borrow at 7.4 percent. The company currently has no debt and the cost of equity is 11.8 pe...
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