Running Deere firm is considering a target capital structure 45% debt and 55% equity. The...
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Running Deere firm is considering a target capital structure debt and equity. The cost of equity for an unlevered firm of Running Deere is and the before tax cost of new debt issued is constant at
a Calculate the Weighted Average Cost of Capital WACC for the Levered Firm assuming the corporate tax rate is
b Calculate the Market Value of Levered Firm and the Market Value of Debt from Levered Firm if the operating income is $ and corporate tax rate is
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