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9. Suppose that your firm's current unlevered value is $800,000, and its marginal corporate tax rate is 35%. Also, you model the firm's PV of

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9. Suppose that your firm's current unlevered value is $800,000, and its marginal corporate tax rate is 35%. Also, you model the firm's PV of financial distress as a function of its debt ratio (D/V) according to the relation: PV of financial distress = 800,000 (D/V)2, what is the firm's levered value if it issues $200,000 of perpetual debt to buy back stock? A. $820,000. B. $869,555. C. $920,000. D. $350,000

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