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1. (1 point) Given debt and equity value figure, draw firm value. FIGURE A FIGURE B FIGURE C 2 1.5 1.5 1.5 DEBT VALUE ($MILLION)

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1. (1 point) Given debt and equity value figure, draw firm value. FIGURE A FIGURE B FIGURE C 2 1.5 1.5 1.5 DEBT VALUE ($MILLION) EQUITY VALUE (SMILLION) COMPANY VALUE ($MILLION) 0.5 o 0 0.5 1 1.5 2 COMPANY CASHFLOW ($MILLION) 0.5 1.5 2 COMPANY CASHFLOW (SMILLION) 0.5 1 1.5 2 COMPANY CASHFLOW (SMILLION)

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