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A firm is currently financed with 5 0 % equity and 5 0 % debt. The firm generates perpetual earning after taxes and interest rates

A firm is currently financed with 50% equity and 50% debt. The firm generates perpetual earning after taxes and interest rates of $10 million per year. The firms cost of equity is 14% its cost of debt is 7%, and has a tax rate of 30%. what is the value of the levered firm?

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