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Consider two firms, Firm X and Firm Y, that have identical assets that generate identical cash flows. Firm X is an all-equity firm, with 2

Consider two firms, Firm X and Firm Y, that have identical assets that generate identical cash flows. Firm X is an all-equity firm, with 2 million shares outstanding that trade for a price of $42 per share. Firm Y has 0.5 million shares outstanding and $8 million in debt. According to MM Proposition, what should be the stock price for Firm Y?

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