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Consider two firms, Firm X and Firm Y, that have identical assets that generate identical cash flows. Firm Y is an allequity firm, with 1

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Consider two firms, Firm X and Firm Y, that have identical assets that generate identical cash flows. Firm Y is an allequity firm, with 1 million shares outstanding that trade for a price of 24 per share. Firm X has 2 million sharss outstanding and 12 million in debt at an interest rate of 5%. According to MM Proposition I, the share price for Firm X is closest to 8,00 24.00 6.00 12.00

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