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Book Value Balance Net Working Capital $ 30 Debt $80 Long Term Assets 70 Equity 20 100 100 Market Value Balance Net Working

Book Value Balance

Net Working Capital $ 30        Debt $80

Long Term Assets      70         Equity 20

                                   100                     100

Market Value Balance

Net Working Capital $ 30       Debt $80

Long Term Assets    170         Equity 120

                                   200                         200 

$80 of debt and 32% corporate tax rate.


A grace period of 5 years. What will be the new value of the firm? Borrowing rate of 6.5%

Top Answer

181.32 will be... View the full answer

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