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Suppose MOON currently has no debt and its equity is worth $20,000. If the tax rate is 30%, what will the value of the firm be if MOON borrows $6000 and uses the proceeds to buy up stock?

Suppose MOON currently has no debt and its equity is worth $20,000. If the tax rate is 30%, what will the value of the firm be if MOON borrows $6000 and uses the proceeds to buy up stock?

发布时间:2025-02-26 05:58:04
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答案:【计分规则】: Value of the levered firm=value of the unlevered firm+TDso, with the new capital structure , the value of the firm=$20000+6000*30%=$21,800
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