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Assume the corporate tax rate is 3 0 % . The firm has no debt in its capital structure. It is valued at $ 1

Assume the corporate tax rate is

30 % .

The firm has no debt in its capital structure. It is valued at $

100

million. According to the MM theory, what would be the value of the firm if it issued $

50

in perpetual debt and repurchased the equity?

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