Business
Business, 19.12.2019 04:31, Redhead667

Afirm with no debt has 200,000 shares outstanding valued at $20 each. its cost of equity is 12%. the firm is considering adding $1 million in debt to its capital structure. the coupon rate would be 8% and the bonds would sell for par value. the firm's tax rate is 34%. how much will the firm be worth after adding the debt? a) $4.033 million b) $4.180 million c) $4.340 million d) $4.660 million e) $5.000 million

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Afirm with no debt has 200,000 shares outstanding valued at $20 each. its cost of equity is 12%. the...

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