Suppose Goodyear Tire and Rubber Company is considering divesting one of its manufacturing plants. The plant is expected

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answerhappygod
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Suppose Goodyear Tire and Rubber Company is considering divesting one of its manufacturing plants. The plant is expected

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Suppose Goodyear Tire and Rubber Company is considering
divesting one of its manufacturing plants. The plant is expected to
generate free cash flows of
$1.61 million per​ year, growing at a rate of 2.6% per
year. Goodyear has an equity cost of capital of 8.3%​, a debt cost
of capital of 6.8%​, a marginal corporate tax rate of 37%​, and
a debt-equity ratio of 2.7. If the plant has average risk and
Goodyear plans to maintain a constant​ debt-equity ratio,
what​ after-tax amount must it receive for the plant for the
divestiture to be​ profitable
A divestiture would be profitable if Goodyear received more
than__million after tax
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