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ABC Stores is an all-equity firm that has 80,000 shares of stock outstanding. ABC is considering borrowing $500,000 at 10 percent interest to repurchase 20,000

ABC Stores is an all-equity firm that has 80,000 shares of stock outstanding. ABC is considering borrowing $500,000 at 10 percent interest to repurchase 20,000 shares. Ignoring taxes, what is the value of the firm?

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