Debt proceeds are used to repurchase equity

Assignment Help Financial Management

Reference no: EM131921824

Three Piggies Enterprises has no debt. Its current total value is $76.4 million. Assume debt proceeds are used to repurchase equity.

Ignoring taxes, what will the company’s value be if it sells $35.2 million in debt? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Round your answer to the nearest whole number, e.g., 32.)

Value of the firm $

Suppose now that the company’s tax rate is 36 percent. What will its overall value be if it sells $35.2 million in debt? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Round your answer to the nearest whole number, e.g., 32.)

Value of the firm $

Reference no: EM131921824

Questions Cloud

Discuss role of aboriginal and torres trait islander health : Discuss the role of the Aboriginal and Torres trait Islander health worker. What strengths do they bring to the interdisciplinary team?

Find the p-value for the test correct to four decimal places : Find the p-value for the test correct to four decimal places.

What will be its optimal cash replenishment level : What will be its optimal cash replenishment level?

What is the probability that on a single test : (a) What is the probability that, on a single test, x is less than 3500? (Round your answer to four decimal places.)

Debt proceeds are used to repurchase equity : Assume debt proceeds are used to repurchase equity. Ignoring taxes, what will the company’s value be if it sells $35.2 million in debt?

Find a two-sided confidence interval : Find a two-sided 90% confidence interval for µ. One can be 90% confident that the true average blood pressure µ for that person is between a and b.

Line with the typical american reader : Using a .05 confidence level, do the results suggest my staff are in line with the typical American reader?

What is the American exploration current WACC : What is the American exploration's current WACC? what will be american Explorations WACC under the revised target capital structure?

Describe two wellness problems based on family assessment : Describe two wellness problems based on your family assessment. After interviewing the family, compile the data and analyze the responses.

User Account

All Pages