Assume the average borrowing rate for Australian companies is 6%, the average tax rate is 30%, and the average P/E ratio

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answerhappygod
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Assume the average borrowing rate for Australian companies is 6%, the average tax rate is 30%, and the average P/E ratio

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Assume the average borrowing rate for Australian companies is6%, the average tax rate is 30%, and the average P/E ratio is15x. Referencing the cost of capital, explain why on average,on an after-tax basis, debt financed cash offers are more likely tobe accretive to the bidder than stock offers.
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