Company ABC currently has no debt and has an unlevered firm value of $32.5 million. Assuming the tax rate is


Question:

/**/
/**/

/**/


/**/
Company ABC currently has no debt and has an unlevered firm value of $32.5 million. Assuming the tax rate is 35% and all MM assumptions are met, what will be the value of the company if it borrows $20 million and uses the proceeds to repurchase shares

/**/
/**/

/**/


/**/

/**/
/**/

/**/


/**/


Leave a Reply

Your email address will not be published.