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An unlevered company has a cost of capital of 1 4 . 6 percent and free cash flow of $ 1 8 0 , 0

An unlevered company has a cost of capital of 14.6 percent and free cash flow of $180,000. A levered company with the same operations and assets has $85,000 in debts with a coupon rate of 7.5 percent that sells at par. The applicable tax rate is 22 percent. What is the value of the levered company?

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