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Assume zero corporate tax rate. The risk free rate is 4%. Suppose that Acorn has a bond with current value $15 million and the bond

Assume zero corporate tax rate. The risk free rate is 4%. Suppose that Acorn has a bond with current value $15 million and the bond is default free. (a) What is the value of Acorns equity? (b) What is the expected return on equity? (c) What is the volatility of the equity return? (d) What is the levered WACC?

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