Calculate the market value of firm l

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Reference no: EM131337016

a. Referring to Table 13.3, calculate the market value of firm L (with a corporate income tax) if the equity amount in its capital structure decreases to $3,000 and the debt amount increases to $3,000.

b. For firm L (with equity = $3,000 and debt = $3,000), calculate (i) the income available to the stockholders and (ii) the cost of equity.

Reference no: EM131337016

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