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Assume two companies A and B have similar cash flows and assets. Company A is levered firm while B is an unlevered firm. Table below

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Assume two companies A and B have similar cash flows and assets. Company A is levered firm while B is an unlevered firm. Table below provides further information of these companies. Company A Company B Debt-$12 million Debt-0 Shares outstanding= 2 million Cost of debt-5 percent Shares outstanding-1 million Share price- $24 According to MM Proposition I, what is the value of the firm A's stock? O $8.00 O $6.00 O $12.00 O $24.00

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