Question S3 [15 Points] Your company's assets have an unlevered value of 25,456,890 USD and...
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Question S3 [15 Points] Your company's assets have an unlevered value of 25,456,890 USD and the perpetual annual unlevered cash produced is 1,750,000 USD. The Company decides to go through with a recapitalization, after which the debt-to-equity ratio (which the company decides to keep constant) is equal to 2.5. What is the value of debt if the interest rate is 2.45% and the tax rate is 36%
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