The Blue Mountain Company is an all equity firm worth $32 million and 5 million shares outstanding.A new capital structure is planned to replace $12 million of equity with debt.They believe it can be raised at 6% interest.If the tax rate is 30%,create the market value balance sheets:
i)before any exchange is announced
ii)at the time of announcement,and
iii)at culmination of the exchange

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The Answer of The Blue Mountain Company is an all equity firm worth $32 million and 5 million shares outstanding.A new capital structure is planned to replace $12 million of equity with debt.They believe it can be raised at 6% interest.If the tax rate is 30%,create the market value balance sheets:
i)before any exchange is announced
ii)at the time of announcement,and
iii)at culmination of the exchange

The Blue Mountain Company Is an All Equity Firm Worth