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Dash Industries wishes to take advantage of the low interest rate environment and increase their debt/equity ratio from 25% to 54% by issuing corporate debt

Dash Industries wishes to take advantage of the low interest rate environment and increase their debt/equity ratio from 25% to 54% by issuing corporate debt and buying back shares. The firm currently has $7.2 million worth of debt outstanding. The cost of this debt is 1%. Dash pays no taxes.

What is the value of Dash Industries after the firm changes its capital structure?

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