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( 5 points ) UVW company has $ 1 0 0 bil in debt. An identical firm has no debt and has a market value

(5

points

)

UVW company has $

100

bil in debt. An identical firm has no debt and has a

market value of $

500

bil. Consider the federal and state taxes of

28 %

combined, personal

tax rate on stock of

17 %,

and personal tax rate on debt of

29 % .

Calculate the value of the UVW company under the Miller's model

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