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As an all-equity firm, Chesapeake Bay Foods has a cost of capital of 11.3 percent, a total firm value of $378,000, and a tax rate

As an all-equity firm, Chesapeake Bay Foods has a cost of capital of 11.3 percent, a total firm value of $378,000, and a tax rate of 33 percent. What would the firms total value be if it borrowed $51,000 at 8.1 percent interest?

$394,830

$429,000

$361,170

$567,406

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