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BNT has an enterprise value of $90m. The company borrows a $60m permanent debt is subject to a tax rate of 30%. Assume the assumptions

BNT has an enterprise value of $90m. The company borrows a $60m permanent debt is subject to a tax rate of 30%. Assume the assumptions of the trade-off theory hold. If the unlevered value of BNT is $80m, calculate the present value of the financial distress cost.

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