Question Help Suppose Goodyear Tire and Rubber Company is considering divesting one of its manufacturing...
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Question Help Suppose Goodyear Tire and Rubber Company is considering divesting one of its manufacturing plants. The plant is expected to generate free cash flows of $1.84 m on per year, growing o ne of 2.3% per year. Goodyear hasan equity cost of capital of 8.4%, a debt cost of capital of 6.9%, a marginal corporate tax rate of 33%, and a deb aty ratio of 2 B. If the plant has average risk and Goodyear plans to maintain a constant debt cut whater- amount must receive for the plant for the diventure to be profitable? Advestiture would be profitable Goodyear received more than milioner tar. (Round to one decimal place)
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