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An unlevered firm has a cost of equity capital of 1 0 % . The firm will invest in a project that will give a

An unlevered firm has a cost of equity capital of

10 % .

The firm will invest in a project that will give a one

-

time cash flow of $

22, 000

after one year. A levered firm invests in the same project as the unlevered firm. What is the value of the levered value with perfect capital markets?

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