Leveraging and deleveraging Find the value of the firm using the information given below. Assume...
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Leveraging and deleveraging Find the value of the firm using the information given below. Assume that the value of assets at the end of period 2 is O. Note the Beginning of period 1 Leverage(D/E) 0.5 Beginning of Period 2 leverage (D/E) 0.75 End of period 1 FCF 50 leverage is changing in the end of period 1. End of period 2 FCF 100 return on debt (rd) 10 return on equity (re) 15 Tc 0.35
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