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The Value of a Restructuring Is Equal to the Net

Question 308

Multiple Choice

The value of a restructuring is equal to the net present value of the:


A) Resulting change in the total value of the firm.
B) Additional debt incurred minus the additional interest expense.
C) Debt outstanding minus the market value of the equity.
D) Net change in the total debt outstanding.
E) Change in the shareholders' value minus the additional interest expense incurred.

Correct Answer:

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