dell Inc. is a publicly traded tech. goods company. The company has $ 520 million...
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dell Inc. is a publicly traded tech. goods company. The company has $ 520 million in book value of debt, reported interest expenses of $ 15.2 million in the most recent year and has an average maturity of 4 years for the debt. The pre-tax cost of debt for the firm is currently 5%. What is your best estimate of the market value of debt outstanding at the firm? (You can assume annual interest payments and a marginal tax rate of 40%) Select one: a. $443.01 million b. $483.00 million c. $495.00 million d. $261.12 million e. $481.70 million
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