Neal Enterprises has no debt. Its current total value is $45 million. Ignoring taxes, what will the company’s value be if it sells $16 million in

Neal Enterprises has no debt. Its current total value is $45 million. Ignoring taxes, what will the company’s value be if it sells $16 million in.

  • Neal Enterprises has no debt. Its current total value is $45 million. Ignoring taxes, what will the company’s value be if it sells $16 million in debt? Suppose now that the company’s tax rate is 40 percent. What will its overall value be if it sells $16 million in debt? Assume debt proceeds are used to repurchase equity.

Neal Enterprises has no debt. Its current total value is $45 million. Ignoring taxes, what will the company’s value be if it sells $16 million in