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An unlevered firm has a value of $900 multion, An otherwise identical but levered firm has 3180 million in debt at a 4%4 inferest rate,

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An unlevered firm has a value of $900 multion, An otherwise identical but levered firm has 3180 million in debt at a 4%4 inferest rate, which is its pre tax cost of dete. Its unlevered cost of equity is 12\%. No growth is expected. Assuming the federal-plus-state corporote tax rate is 25%, use the reM modef aieh corporatri tares to defermine the value of the levered firm. Enter your answer in milions. For example, an answer of 510,550,000 shoukd be entered as to 55 . Round roar ansaer fo the nearest whole thanber

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