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AP Health currently has zero-debt financing. Its EBIT is $2 million, and it has a 21% tax rate. It has $10 million in assets. Suppose

AP Health currently has zero-debt financing. Its EBIT is $2 million, and it has a 21% tax rate. It has $10 million in assets. Suppose the firm is considering 30% of its equity with debt financing bearing an interest rate of 5%. Calculate the total dollar returned to investors with debt financing.

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