A company just issued $440000 of perpetual 4% debt and used the proceeds to repurchase...
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A company just issued $ of perpetual debt and used the proceeds to repurchase stock. The company expects to generate of EBIT in perpetuity. The company distributes all its earnings as dividends at the end of each year. The firms unlevered cost of capital is and the tax rate is Use APV method to calculate the value of the company with leverage.
A company just issued $ of perpetual debt and used the proceeds to repurchase stock. The company expects to generate of EBIT in perpetuity. The company distributes all its earnings as dividends at the end of each year. The firms unlevered cost of capital is and the tax rate is Use APV method to calculate the value of the company with leverage.
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