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Wigdor Manufacturing Is Currently All Equity Financed,had EBIT of £2

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Wigdor Manufacturing is currently all equity financed,had EBIT of £2 million,and is in the 34% tax bracket.Louis,the company's founder,is the lone shareholder.If the firm were to convert £4 million of equity into debt at a cost of 10%,what would be the total cash flow to Louis if he holds all the debt?
Compare this to Louis' total cash flow if the firm remains unlevered.


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