Business, 27.11.2019 23:31 arod20061

Suppose there are no taxes. firm abc has no debt, and firm xyz has debt of $5000 on which it pays interest of 10% each year. both companies have identical projects that generate free cash flows of $800 or $1000 each year. after paying any interest on debt, both companies use all remaining free cash flows to pay dividends each year.

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Suppose there are no taxes. firm abc has no debt, and firm xyz has debt of $5000 on which it pays in...

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