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Question: A project has an initial cost of $482,000 of which 40 percent will be financed with debt. The interest rate on the debt is 9 percent. The cash flow from the project to the equityholders if the firm were unlevered would be $94,000. What is the cash flow to the equityholders given that the firm is leveraged and has a tax rate of 35 percent?

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Category:- Basic Finance
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