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00 0 Video Check My Work (5 remaining) An unlevered firm has a value of $800 million. An otherwise identical but levered firm has
00 0 Video Check My Work (5 remaining) An unlevered firm has a value of $800 million. An otherwise identical but levered firm has $200 million in debt at a 5% interest rate, which is its pre-tax cost of Odebt. Its unlevered cost of equity is 12%. No growth is expected. Assuming the federal-plus-state corporate tax rate is 25%, use the MM model with corporate taxes to determine the value of the levered firm. Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Round your answer to the nearest whole number. 0 00 $ million 0 eBook MM Model with Corporate Taxes Icon Key Check My Work (5 remaining) Question
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