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Charge It Company operates in perfect capital markets and earns a net operating profit of $2 million each and every year. It operates in an

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Charge It Company operates in perfect capital markets and earns a net operating profit of $2 million each and every year. It operates in an industry in which the required return on assets is 8%. The firm has $12,500,000 worth of outstanding bonds that pay 5% interest, and it has $12,500,000 in common stock with a required return of 11%. What is the total value of the company according to Proposition One. O$15,000,000 $20,000,000 $25,000,000 $10,000,000

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