What would be the value of the firm

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Question: Assume the marginal corporate tax rate is 30%. The firm has no debt in its capital structure. It is valued at $4,472,234. What would be the value of the firm if it issued $1,069,830 in 4 year debt at 5% cost of debt after tax and repurchased the same amount of equity?

Reference no: EM133491812

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