What will be the total value of the equity

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Problem 1: Tiffany Inc. is currently valued at €900 million but management wants to completely pay off its perpetual debt of €300 million. Tiffany Inc. is subject to a 30 per cent marginal tax rate. If Tiffany Inc. pays off its debt, what will be the total value of its equity?

Reference no: EM132753379

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