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What is the firm marginal corporate tax rate

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Reference no: EM132798269

La Fábrica de Fundición de Los Niños is currently worth $11,000,000. It is told that if it issues $3,000,000 of perpetual debt (and uses the proceeds to repurchase equity) the value of the firm will increase by $1,020,000. If the total bankruptcy costs and agency costs combine to be a cost of $120,000, what is the firm's marginal corporate tax rate? Ignore personal taxes.

Reference no: EM132798269

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