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Business, 02.05.2021 04:10 miayadeliss6910

Baiman, Inc. issues $1,000,000 of zero-coupon bonds that mature in 10 years. Compute the bond issue price assuming that the bonds' market rate is: if prior to the debt issue at 12%, the firm had total assets of $3.5 million and total equity of $1 million, what would be the effect of the new borrowing on the financial leverage of the firm?
(Round your answers to two decimal places.)
1. Financial leverage subsequent to borrowing

2. Increase (Decrease) in financial leverage

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Baiman, Inc. issues $1,000,000 of zero-coupon bonds that mature in 10 years. Compute the bond issue...
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