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14. An unlevered firm currently has a value of $100 million. The firm has a tax rate of 30%. The firm wishes to replace $50

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14. An unlevered firm currently has a value of $100 million. The firm has a tax rate of 30%. The firm wishes to replace $50 million of its equity with $50 million of permanent debt. By increasing its leverage, the PV of the expected costs of financial distress would rise from 0 to $10 million. What is the value of the levered firm if it goes ahead with this plan

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