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What will be the new value of the firm

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Question - The current value of a firm is 369,300 dollars and it is 100% equity financed. The firm is considering restructuring so that it is 80% debt financed. If the firm's corporate tax rate is 0.7, what will be the new value of the firm under the MM theory with corporate taxes but no possibility of bankruptcy.

Reference no: EM132823329

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