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Company A unlevered value is $100 million. The tax rate is 30%. The debt cost of capital is 3% and the asset cost of capital

Company A unlevered value is $100 million. The tax rate is 30%. The debt cost of capital is 3% and the asset cost of capital is 6%.

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i. What is company As value if debt/assets is raised to 25% after a leveraged recapitalization. Assume debt is permanent.

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