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ABCC. has an opportunity to invest in an expansion of its foreign operations. ABC anticipates financing the investment using both debt and common equity. In

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ABCC. has an opportunity to invest in an expansion of its foreign operations. ABC anticipates financing the investment using both debt and common equity. In particular, the company expects to issue 2 million shares of equity and 60,000 new 20 -year bonds. The current share price is $33. Furthermore, the beta of the firm is 1.6 while the market risk premium is 11.5% and the expected return on the market is 14.8%. The face value of the bonds is $1,000 and the annual coupon rate is 5.5%. Their current long-term bonds are selling for $1,035. If the corporate tax rate is 30% what is the total value of the ABCC

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