(Answered) Kohwe corporation plans to borrow 519 million to finance a

Economics

Kohwe Corporation plans to borrow $ 51.9 million to finance a new investment. The firm will pay interest only on this loan each? year, and it will maintain an outstanding balance of $ 51.9 million on the loan. Suppose that? Kohwe's corporate tax rate is 40 % and expected free cash flows are $ 10.2 million each year. Kohwe currently has 5 million shares? outstanding, and it has no other assets or opportunities. Suppose the appropriate discount rate for? Kohwe's future free cash flows is 7.9 %. What is? Kohwe's share price today if the investment is financed with? debt?

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