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An unlevered firm has a value of $ 6 5 0 million. An otherwise identical but levered firm has $ 1 6 0 million in
An unlevered firm has a value of $ million. An otherwise identical but levered firm has $ million in debt at a interest rate, which is its pretax cost of debt. Its unlevered cost of equity is No growth is expected. Assuming the federalplusstate corporate tax rate is use the MM model with corporate taxes to determine the value of the levered firm. Enter your answer in millions. For example, an answer of $ should be entered as Round your answer to the nearest whole number.
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