Business, 24.04.2020 23:35 Prettygirlbuggy

Tatum can borrow at 6.7 percent. The company currently has no debt and the cost of equity is 11.1 percent. The current value of the firm is $625,000. The corporate tax rate is 21 percent. What will the value be if the company borrows $340,000 and uses the proceeds to repurchase shares?

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Tatum can borrow at 6.7 percent. The company currently has no debt and the cost of equity is 11.1 pe...

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