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Gomez Computer Systems

Gomez Computer Systems





Refer to Gomez Computer Systems. According to the MM extension with growth, what is the value of Gomez's tax shield? 
Gomez Computer Systems 
Gomez Computer Systems has EBIT of $200,000, a growth rate of 6 percent, and faces a tax rate of 40 percent. In order to support growth, Gomez must reinvest 20 percent of its EBIT in net operating assets. Gomez has $300,000 in 8 percent debt outstanding, and a similar company with no debt has a cost of equity of 11 percent.





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19 Mar 2016

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  1. Genius

    Gomez Computer Systems

    Gomez Computer Systems ****** ******
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