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33. NuTronics Inc. is currently unlevered with a value of $1,000,000 and a marginal corporate tax rate of 40%. There are no personal taxes. The

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33. NuTronics Inc. is currently unlevered with a value of $1,000,000 and a marginal corporate tax rate of 40%. There are no personal taxes. The firm estimates the PV at its financial distress costs as 0.125 1 Debt. What is the firm's levered value if it issues $500,000 of perpetual debt and repurchases shares with the funds? $1 ,000,000 $1 ,137,500 $1 l020,000 $1 l252,500 E1!" 53

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