Bjk has debt outstanding with the face value of 200 million


BJK has debt outstanding with the face value of $200 million. The value of the firm if it were entirely financed by equity would be $350 million. Number of shares outstanding is 5 million. The stock is currently selling at $32. The corporate tax rate is 20%. What is the decrease in the value of the company due to expected bankruptcy cost?

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Financial Management: Bjk has debt outstanding with the face value of 200 million
Reference No:- TGS01559396

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