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An unlevered firm has a value of $100 million. An otherwise identical but levered firm has $20 million in debt and a 5% cost of

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An unlevered firm has a value of $100 million. An otherwise identical but levered firm has $20 million in debt and a 5% cost of debt. Assuming a corporate tax rate of 35%, and a personal tax rate of 30%, long-term capital gain tax rate of 12% and financial distress cost of 10% of debt. What is the value of the levered firm

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