Assume the marginal corporate tax rate is 30 percent. The firm has no debt in its capital structure. It is valued at $100 million. What would be the value of the firm if it issued $50 million in perpetual debt and repurchased the same amount of equity

Bagwell's net income for the year ended december 31, year 2 was $189,000. information from bagwell's comparative balance sheets is given below. compute the cash received from the sale of its common stock during year 2. at december 31 year 2 year 1 common stock, $5 par value $ 504,000 $ 453,600 paid-in capital in excess of par 952,000 856,600 retained earnings 692,000 585,600