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According to the information for two firms (levered and unlevered firms) given below, compute the value of the levered firm including the values of the

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According to the information for two firms (levered and unlevered firms) given below, compute the value of the levered firm including the values of the tax-shield benefits of the debt and bankruptcy-agency costs. Assuming zero growth and 100% dividend payout, permanent debt, so treated as a perpetuity. NOTE: PLEASE SHOW HOW YOU COMPUTE EACH OF THE ITEMS. : $50.000 $40.000 : : 10% : 12% Debt amount for levered firm NOI for each firm Interest rate for the debt Stock market return Tax rate for each firm Treasury bill rate Present value for bankruptcy-agency cost Beta () coefficient for unlevered firm : 20% : 5% : $38.000 0.9

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