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Title: Assume that capital markets are perfect except for the existence of corporate taxes. Your firm pays ... Post by: Memphic on Nov 20, 2017 Assume that capital markets are perfect except for the existence of corporate taxes. Your firm pays 40% of earnings in taxes and you decide to issue $25 million in new debt and $25 million in new equity. Your ownership stake in the firm following these new issues of debt and equity is closest to:
A) 58% B) 55% C) 33% D) 50% Title: Re: Assume that capital markets are perfect except for the existence of corporate taxes. Your firm ... Post by: EgorGruzdev on Nov 20, 2017 Content hidden
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