What is the firm value, The effective tax rate is 25%. What

What is the firm value

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Now assume you are in a perfect market with only corporate taxes added. CDE Corp. is all equity financed with 5000 shares outstanding worth $9 each. They are planning on issuing $10,000 of new perpetual debt at the 8% market rate of interest. The effective tax rate is 25%. What is the firm value after they make the debt for equity exchange?

Reference no: EM13771093

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What is the firm value : The effective tax rate is 25%. What is the firm value after they make the debt for equity exchange?

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