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1. According to the information for two firms (levered and unlevered firms) given below, compute the value of the levered firm including the values of

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1. According to the information for two firms (levered and unlevered firms) given below, compute the value of the levered firm including the values of the tax-shield benefits of the debt and bankruptcy-agency costs. Assuming zero growth and 100\% dividend payout, permanent debt, so treated as a perpetuity. (30p)

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