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Business, 31.07.2020 04:01 crtlq

Tatum can borrow at 7.25 percent. The company currently has no debt and the cost of equity is 11.65 percent. The current value of the firm is $680,000. The corporate tax rate is 22 percent. What will the value be if the company borrows $395,000 and uses the proceeds to repurchase shares

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Tatum can borrow at 7.25 percent. The company currently has no debt and the cost of equity is 11.65...

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