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Altec Audio is currently an all equity firm that has 5 1 0 , 0 0 0 shares of stock outstanding with a market price
Altec Audio is currently an all equity firm that has shares of stock outstanding with a market price of $ a share. The current cost of equity is percent and the tax rate is percent. The firm is considering adding $million of debt with a coupon rate of percent to its capital structure. The debt will be sold at par value. What is the levered value of the equity?
A $
B $
C $
D $
E $
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