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Ben's Co. is currently an all-equity company that has 155,000 shares of stock outstanding with a market price of $20 a share. The current cost

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Ben's Co. is currently an all-equity company that has 155,000 shares of stock outstanding with a market price of $20 a share. The current cost of equity is 13.9 percent and the tax rate is 25 percent. The company is considering adding $1,600,000 million of debt with a coupon rate of 7.5 percent to its capital structure. The debt will be sold at par value. What is the levered value of the equity

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