Assume the marginal corporate tax rate is 21 percent. The fi…
Assume the marginal corporate tax rate is 21 percent. The firm has no debt in its capital structure. It is valued at $100 million. What would be the value of the firm if it issued $50 million in perpetual debt and repurchased the same amount of equity?
Read DetailsYour company is considering investing in a machine that auto…
Your company is considering investing in a machine that automatically makes coffee and tells jokes to employees. The machine costs $100,000, and your team has estimated that it will save $20,000 in coffee costs per year for the next 6 years. However, the jokes are so bad that there’s a 50% chance productivity might drop. As the CFO, what’s the most important financial metric you should use to decide whether to invest?
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