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What is the equity worth at firm

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Reference no: EM133069529

Suppose a levered firm has a current value of $15,000,000. Suppose that the firm currently has a tax rate of 35%. Suppose the firm would have a value of $12,800,000 without debt.

A. What is the equity worth at this firm?

B. If the firm wants to raise $10,000,000 in debt, what will the firm be worth?

Reference no: EM133069529

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