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Company XYZ has an unlevered cost of capital of 12.8 percent, a cost of debt of 7.8 percent, and a tax rate of 34 percent.

Company XYZ has an unlevered cost of capital of 12.8 percent, a cost of debt of 7.8 percent, and a tax rate of 34 percent. The firm value of Company XYZ is $1m. What is the market value of Company XYZs debt if the cost of equity is 15.51 percent?

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