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Example 2: in ABC Corp is an unlevered firm with the following data: 35%, cost of capital 12%. If XYZ is a levered firm with

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Example 2: in ABC Corp is an unlevered firm with the following data: 35%, cost of capital 12%. If XYZ is a levered firm with $75 million in debt and a cost of debt of 9%, find its (1) total value, (2) value of equity, (3) return on equity, and (4) wACC. A. EBIT: 25 million; Tax rate

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