# Three Piggies Enterprises has no debt Its current total value is $75.2 million

## Question: Three Piggies Enterprises has no debt. Its current…

Three Piggies Enterprises has no debt. Its current total value is $75.2 million. Assume debt proceeds are used to repurchase equity.

Ignoring taxes, what will the company’s value be if it sells $34.6 million in debt? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Round your answer to the nearest whole number, e.g., 32.)

**Value of the firm $**

Suppose now that the company’s tax rate is 30 percent. What will its overall value be if it sells $34.6 million in debt? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Round your answer to the nearest whole number, e.g., 32.)

**Value of the firm $**

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