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A debt-free firm currently has 400,000 shares of stocks outstanding. The company is considering reducing the number of shares to 300,000. To do this, the

A debt-free firm currently has 400,000 shares of stocks outstanding. The company is considering reducing the number of shares to 300,000. To do this, the company will have to borrow 5 million dollars at 8% interest. Ignoring taxes, what is the value of the firm?

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