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12. An unlevered firm has a value of $168 million. An otherwise identical but levered firm has $33 million in debt. a) Under the MM

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12. An unlevered firm has a value of $168 million. An otherwise identical but levered firm has $33 million in debt. a) Under the MM zero-tax model, what is the value of the levered firm? (1.5 points) b) Under the MM corporate tax model, what is the value of the levered firm if the corporate tax rate is 26% (2 points)

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