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Brealey Corporation is currently all equity financed and has a value of $85 million. Investors currently require a return of 17.50 percent on common stock.

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Brealey Corporation is currently all equity financed and has a value of $85 million. Investors currently require a return of 17.50 percent on common stock. Brealey pays no taxes. Brealey plans to issue $50 million of debt with a return of 7.8 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. Enter your response below. 85 Correct response: 85million This question has 4 parts, so you will be clicking verify 4 times Given that the firm will still have a value of $85 million, what will be the value of the equity after the debt issue? Please state your answer in millions. Enter your response below. Number million Section Attempt 1 of 1 Verify Submit Assignment Quit & Save Back Question Menu No Und

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