What is value of gilded cage converts to debt-equity ratio


Assignment:

M&M and Taxes. Gilded Cage Ltd uses no debt. The weighted average cost of capital is 12%. The current market value of the company is $40 million. The corporate tax rate is 40%. What is the value of the company if Gilded Cage converts to debt-equity ratio of 1? What if the debt-equity ratio is 2?

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Corporate Finance: What is value of gilded cage converts to debt-equity ratio
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