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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 22,600 and it is 100% equity financed. The firm is considering restructuring so that it is 100% debt financed. If the firm's corporate tax rate is 0.5, what will be the new value of the firm under the MM theory without taxes, transactions costs, or the possibility of bankruptcy?

Reference no: EM132825204

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