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Emily Corp. is an unlevered firm with a market value of $ 4 5 million. The firm has a tax rate of 3 5 %

Emily Corp. is an unlevered firm with a market value of $45 million. The firm has a tax rate of 35%. The firm plans to replace $12 million of its equity with $12 million of debt at an interest rate of 10%. The debt will be held for the next 25 years only. What would be the value of the levered firm if it goes ahead with this plan?

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