Neal enterprises has no debt its current total value is 716


Neal Enterprises has no debt. Its current total value is $71.6 million. Assume proceeds are used to repurchase equity.

Requirement 1:

Ignoring taxes, what will the company's value be if it sells $32.8 million in debt?

Requirement 2:

Suppose now that the company's tax rate is 34 percent. What will its overall sells $32.8 million in debt?

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Operation Management: Neal enterprises has no debt its current total value is 716
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