Business, 25.03.2020 00:36 lorriegoodman3483

Wigdor Manufacturing is currently all-equity financed, has an EBIT of $2 million and has a corporate tax rate of 21 percent. Louis, the company's founder, is the lone shareholder. All earnings are paid out as dividends to Louis. If the firm were to convert $4 million of equity into debt at a cost of 10 percent, what would be the total cash flow from the firm to Louis if he holds all the debt

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Wigdor Manufacturing is currently all-equity financed, has an EBIT of $2 million and has a corporate...

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