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12. Firm ABC has a debt-to-capital ratio of 40%. The market value of this firms equity equals $9m. What would be this firms market value

12. Firm ABC has a debt-to-capital ratio of 40%. The market value of this firms equity equals $9m. What would be this firms market value of equity if its debt-to-equity ratio goes to 25%, assuming that the MM model holds and there is no taxes?

Group of answer choices

None of the others

$10m

$11m

$15m

$16m

$9m

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