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Final Exam Financial Management PDF PDF

14 Pages·2023·English
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by ['A. Hanifah']| 2023| 14 pages| English

About Final Exam Financial Management PDF

This document contains the answers to questions on a final exam for a financial management course. The first question discusses whether a company should issue debt or equity to finance a land purchase. Debt financing is recommended because interest payments are tax deductible, creating a tax shield that increases firm value. The second question provides details on the company's balance sheet and calculates outcomes of financing the purchase with either equity or debt. Financing with debt results in a higher stock price per share. The third question provides valuation details for a levered firm and calculates present value of unlevered cash flows for the first five years.

Detailed Information

Author:['A. Hanifah']
Publication Year:2023
Pages:14
Language:English
Format:PDF
Price:FREE
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