Bjk has debt outstanding with the face value of 200 million, Ask an Expert

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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, Finance

Category:- Financial Management
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