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Brealey Corporation is currently all equity financed and has a value of $55 million. Investors currently require a return of 14.90 percent on common stock.

Brealey Corporation is currently all equity financed and has a value of $55 million. Investors currently require a return of 14.90 percent on common stock. Brealey pays no taxes. Brealey plans to issue $45 million of debt with a return of 6.1 percent and use the proceeds to repurchase common stock.

What will be the value of the firm after the debt issue? Please state your answer in millions.

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