Illustrate the equivalence of various valuation methods

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Reference no: EM131977593

To illustrate that financing has no impact on firm value if there are no taxes (i.e. financing affects firm value purely because the interest payments generate tax-savings), and to further illustrate the equivalence of various valuation methods. Assume the the firm has$ 100,000 of debt @ 10% and the tax rate is zero.

Assume the the firm has $ 200,000 of debt @10% and the tax rate is zero.

Find the firm value using

j) APV method

$__________.

k) FTE method

$__________.

l) WACC method

$__________.

Reference no: EM131977593

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