Roxy Broadcasting was originally an all-equity firm with a before-tax value of $25,000,000. Roxy now pays taxes at a 30% rate. What is the value of Roxy under the 35/65 debt-to-equity capital structure? Under the 65/35 capital structure?
What is the value of Roxy under the 35/65 debt-to-equity capital structure? (Round to the nearest dollar.) What is the value of Roxy under the 65/35 debt-to-equity capital structure? (Round to the nearest dollar.)