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ABC company is an all equity company and has 20,000 shares outstanding with a market price of $40 per share. It is considering alternative capital

ABC company is an all equity company and has 20,000 shares outstanding with a market price of $40 per share. It is considering alternative capital structures that use debt. If the company replaces 15% of its shares with debt, how much would be the total market value of the company under the new capital structure? Assume no taxes.

Group of answer choices

$17,000

$817,000

$800,000

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