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    Exam 18: Capital Budgeting and Valuation With Leverage
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    Given That Rose Issues New Debt of $50 Million Initially
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Given That Rose Issues New Debt of $50 Million Initially

Question 35

Question 35

Multiple Choice

Given that Rose issues new debt of $50 million initially to fund the acquisition,the total value of this acquisition using the APV method is closest to:


A) $100 million
B) $120 million
C) $124 million
D) $115 million

Correct Answer:

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