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( 5 points ) A firm is currently an all - equity financed with no leverage, with a value of $ 4 0 0 bil.

(5 points) A firm is currently an all-equity financed with no leverage, with a value of $400
bil. If the company finances its capital structure with 25% debt at an interest rate of 8%
(no growth), and the stated tax rate is 25%, calculate the value of the company when it is
levered in the context of the Modigliani and Miller's Hypothesis.
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