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A firm has expected EBIT of $960, debt with a face and market value of $1, 500 paying an 8.5% annual coupon, and an un-leveraged

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A firm has expected EBIT of $960, debt with a face and market value of $1, 500 paying an 8.5% annual coupon, and an un-leveraged cost of capital of 12%. If the tax rate is 34%, what is the value of the leveraged firm, according to M&M's proposition I with taxes? $6, 325 $7, 964.12 $3.685 $3, 258 $5, 790

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