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The TT company is planning to raise $2,500,000 in perpetual debt at 11% to finance part of the expansion.

This question was answered on Mar 22, 2010. View the Answer
The TT company is planning to raise $2,500,000 in perpetual debt at 11% to finance part of the expansion. They have just recieved an offer from the albanic county board of commissioners to raise the financing for them at 8% if they build in albanic county. What is the total added value of debt financing to TT if their tax rate is 34% and Albanic raises it for them?

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CH220310_5297_FIN.doc

The TT Company is planning to raise $2,500,000 in perpetual debt at 11% to finance
part of the expansion. They have just received an offer from the Albanic county board
of commissioners to raise...

This question was asked on Mar 21, 2010 and answered on Mar 22, 2010.

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