The MaxWell Company Is Financed Entirely With Equity. The Company Is Considering A Loan Of $525,000. The Loan Will Be Repaid In Equal Principal Installments Over The Next Two Years, And It Has An Interest Rate Of 7 Percent. The Company’s Tax Rate Is 23 Pe

匿名用户 最后更新于 2021-11-29 14:52 金融Finance

The MaxWell Company is financed entirely with equity. Thecompany is considering a loan of $525,000. The loan will be repaidin equal principal installments over the next two years, and it hasan interest rate of 7 percent. The company’s tax rate is 23percent. According to MM proposition I with taxes, what would bethe increase in the value of the company after the loan?

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