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(2 points) What is today's value of firm F (A) if firm F's leverage is L=1? Hint: 1) Compute the cash-flows to the shareholders

(2 points) What is today's value of firm F (A) if firm F's leverage is L=1? Hint: 1) Compute the cash-flows to the shareholders of a comparable (exact same features as F except the capital structure) unlevered firm. 2) Assume that discounting these cash-flows at the WACC provides the value of the firm.

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