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Assume the corporate tax rate is 50%. A firm has perpetual expected EBIT of $100. The firm has no debt in its capital structure. It's

Assume the corporate tax rate is 50%. A firm has perpetual expected EBIT of $100. The firm has no debt in its capital structure. It's cost of equity is 10%. What would be the value of the firm if it is issued $400 in perpetual debt?

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