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13 2 points Assume the marginal corporate tax rate in the UK is 19 percent. The firm has no debt in its capital structure. It
13 2 points Assume the marginal corporate tax rate in the UK is 19 percent. The firm has no debt in its capital structure. It is valued at 500 million. What would be the value of the firm if it issued 250 million in perpetual debt and repurchased the same amount of equity? Note that the value of the levered firm is equal to the value of unlevered firm plus the present value of the tax sheild. 47.5 million 447.5 million 547.5 million 647.5 million
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