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ABC Company has issued debt of $77,923 at an interest rate of 6.6%. What is...

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Finance

ABC Company has issued debt of $77,923 at an interest rate of 6.6%. What is the present value of the interest tax shield? Assume a tax rate of 24.1%.

ABC Company is an all-equity firm with a market value of $150,533. The company can borrow money at 8.9%. If the company borrows $19,287, what is the new value of the firm? Assume a tax rate of 33.8%.

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