Business, 27.08.2019 03:30 Cocco

Kn& j expects its ebit to be $138,000 every year forever. the firm can borrow at 10 percent. kn& j currently has no debt and its cost of equity is 17.2 percent. the tax rate is 35 percent. what will the value of kn& j be if the firm borrows $50,000 and uses the loan proceeds to repurchase shares?

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Kn& j expects its ebit to be $138,000 every year forever. the firm can borrow at 10 percent. kn&...

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