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Daimler Corp is operating in a country U where the corporate tax is 40%, personal income tax on bond investment is 27% while the personal
Daimler Corp is operating in a country U where the corporate tax is 40%, personal income tax on bond investment is 27% while the personal tax on stock is 20%. If Daimler current has $7 million total market value of debt financing, what would be the value of the company of Daimler Corp in this country U? Assume the market value of Daimler Corp with no financial leverage is $45 million.
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